Budget

Chancellor George Osborne laid out his plans for the economy in the Budget today.

The chancellor said this year's policies signalled a move from "recovery to reform".

Mr Osborne announced an increase in the threshold before workers start paying income tax to £8,105, financial support for first-time home buyers, a two per cent cut to corporation tax this year, a tax on private jets, a clampdown on non-doms, the introduction of £140 flat-rate state pension, a review into a merger of national insurance and income tax and a fair fuel stabiliser, including a 1p cut on fuel duty.

He emphasised the need to promote growth in the economy, where October's comprehensive spending review focused on spending cuts.

But following yesterday's surprise rise in inflation to 4.4% and the negative growth in the economy at the start of 2011, the Office for Budget Responsibility's growth projections were downgraded from the 2.1% predicted for 2011 to 1.7%.