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Last Updated: Wednesday, 6 December 2006, 13:49 GMT
Pre-Budget report: point-by-point
The main points from Chancellor Gordon Brown's pre-Budget speech in the House of Commons:

FUEL DUTY

  • From February, air passenger duty will rise from £5 to £10 for most flights.

  • There will be an inflation rise in fuel duty from midnight. The fuel duty escalator will not be restored. The rise will come to 1.25 pence a litre.

  • Tax discounts for biofuels will be extended.

    CHILD BENEFITS

  • In April, benefit payments for the poorest children will rise to £64 a week.

  • Every mother will get additional child benefit in the last months of pregnancy from April 2009.

    PENSIONS

  • Basic state pension to rise 3.6% in April and pension credit minimum guarantee to rise £5 for single people and £7.65 for couples.

    EDUCATION

  • Capital investment in education next year will be £8.3bn.

  • Direct payments to schools will go up in April from £39,000 to £50,000 for primaries and £150,000 to £200,000 for secondaries.

    PRE-BUDGET REPORT

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  • Mr Brown said his goal was 12,000 new or completely refurbished schools - half of all primaries and 90% of secondaries - and 100 rebuilt colleges and 3,500 new children's centres.

  • By 2020, 90% of adults should achieve five GCSEs or equivalent, he added.

  • Former CBI director general Sir Digby Jones will take up a new role in boosting skills.

  • The government will consult on £2,000 bursaries to encourage young people in care to go to university.

  • New "summer universities", along with work experience and coaching, would be established to encourage people to stay on in education after 16.

  • Universities will receive £60m for applied research to help Britain "transform knowledge into successful products and new jobs".

    HOMES AND PLANNING

  • From next year, most new carbon-zero homes will be exempt from stamp duty.

  • A further 300,000 households are to be offered free insulation and free central heating.

  • Planning decisions on major infrastructure projects are to be made by an independent planning body.

  • Another 160,000 families are to be helped onto the housing ladder through shared equity schemes.

    COMMUNITIES

  • The normal budget period for funding voluntary and other groups will rise from one year to three years.

  • Councils will get £30m to encourage community ownership of community assets.

    THE ECONOMY

  • Mr Brown said the government's aim was to "unleash" the economy.

  • Economic growth this year is expected to be 2.75%, rising to between 2.75% and 3% next year, he added.

  • By mid-2007 Mr Brown said he expected inflation to be at its 2% target.

  • He said 10 years ago, Britain was bottom of the G7 league for national income per head but was now second only to the US.

  • More than 16 million people have tax-free ISA accounts.

  • Britain will meet both its fiscal rules in this economic cycle and the next.

  • The overall surplus for this economic cycle is £8bn, meeting the "golden rule", while borrowing will fall from 2.3% of national income to 1.3% by 2011.

  • China and other economies were competing on skilled workers, so the UK's had to "out-innovate" competitors.

  • The "new priority" was "world-leading" investments in areas such as transport and education, Mr Brown said.

    MINIMUM WAGE

  • The minimum wage is now £5.35 an hour and in January penalties for failing to pay it will rise, Mr Brown said.

  • There will be a 50% increase to £9m in the Budget to monitor and to police the minimum wage.

    DEFENCE

  • An extra £600m will be provided for military operations in Iraq, Afghanistan and elsewhere and another £84m for intelligence.

    ENTERTAINMENT INDUSTRY

  • New penalties will be introduced for film and music piracy, alongside greater rights to copy for personal use.

  • Next year will see the introduction of the new tax relief for film-making.


  • VIDEO AND AUDIO NEWS
    Gordon Brown delivers his pre-Budget report



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