What the chancellor announced

Chancellor of the Exchequer Gordon Brown's pre-Budget spending report included the following announcements:

Economic forecasts

• Inflation forecast to stay on target at 2.5% in coming years

• Support reaffirmed for Bank of England's independence as being in long term interests on the country

• Spending this year to be £2bn less than planned - current budget expected to be £5.5bn in surplus

• £1.5bn debt to be repaid this year, £4bn net borrowing next year and £5bn in following year

• Golden rule being achieved - no borrowing to pay for current spending over the cycle

• UK economy expected to grow by 1-1.5% in 1999, 2.25-2.75% in 2000 and 2.75%-3.25% in 2001

• Current budget surplus of £33bn forecast over the next five years

• Public investment to double

• Public sector debt set to fall to 39% next year, 38% the year after and 36.5% the following year - well within Maastricht criteria for joining European Monetary Union if the UK decides to do so

Helping business

• £250m investment in new traineeship scheme

• Business to take world of work and business into classrooms - tax relief for secondment of staff

• Long-term commitment of employees to be rewarded - double number of firms to offer employees the chance to own shares in company

• Small businesses - temporary investment allowance to become permanent tax break

• Inland Revenue and Contributions Agency to be merged - will offer one-stop advice service for small businesses

• Examining changes to planning permission laws - cited by business as bar to productivity

• Banks to look at ways of better serving needs of business (review by Don Cruickshank, previously of Oftel)

• Tax credit to be discussed for research and development among businesses

• Eight new institutes of enterprise to be created in British universities to encourage scientific research

• New incentives to be considered for venture capital investment

• £50 reduction being considered in road licence tax for smallest and most efficient cars

Making work pay

• New Deal to be extended - 60,000 extra posts to be created

• From April employers will start to pay national insurance from £83

• Minimum family income guarantee be raised to £190 from October 1999

• Extra help for childcare - childcare tax credit to be extended to 14 year olds

• Disabled person's tax credit to be raised

• Pensioner couples to be guaranteed a minimum weekly income of £117

Extra cash

• New investment in schools, 25 hospitals totalling £11bn over three years

• Extra £250m announced for National Health Service for winter

• Previously announced extra investment of £40bn for health and education guaranteed