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Last Updated: Tuesday, 9 October 2007, 16:05 GMT 17:05 UK
Main points: Darling statement
The main points from Chancellor Alistair Darling's pre-Budget report and Comprehensive Spending Review statement:

TAXES

  • The inheritance tax threshold for married couples and those in civil partnerships will rise to 600,000 from today and 700,000 by 2010.

  • The main rate of corporation tax will be cut by 2p in the pound to 28% by next year.

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  • Mr Darling promised to reform the capital gains tax system, ensuring those working in private equity pay a "fairer share". There will be a single rate of 18%.

  • A number of "loopholes" for non-domiciled tax payers will be examined, Mr Darling said. Tory plans to charge a flat rate of 25,000 to such people would mean only 15,000 paying, he added. This would mean revenue of 650m a year, rather than 3.5bn that the Tories had estimated, Mr Darling said.

  • Grants to local authorities for local services in England will increase to 26bn by 2010 to ensure local authorities can keep council tax rises substantially below 5%, Mr Darling said.

    HEALTH

  • Over the next three years the NHS will increase its funding by an average of 4% above the rate of inflation.

  • Investment in health in England to rise from 90bn this year to 110bn by 2010.

    Mr Darling said the single fund for health research would be expanded to 1.7bn by 2010.

    EDUCATION AND SCIENCE

  • The education and skills budget will rise to 74bn by 2010.

    An additional 2bn will be invested in 2010 in health and education, Mr Darling said, including a 250m fund to ensure all children at school are ready to learn and benefit from personalised support.

  • Investment on science and technology to rise to 6bn in three years' time.

    HOUSING

  • The government will spend more than 4bn over the next three years to help people in poor-quality housing make renovations.

  • Proposals are to be brought forward in the Budget to help lenders provide more fixed-rate mortgages for 10 years or even longer.

    THE ECONOMY

  • Mr Darling said it was a time of "increased economic uncertainty" with "turbulence in America, Asia and Europe" .

  • There would be "no risks with unaffordable promises that put the public finances at risk".

  • UK economic growth is expected to be between 2% and 2.5% next year, the chancellor said. And for 2009/2010 the figure would be 2.5% to 3%, he added.

  • Mr Darling said he expected to make a statement on Northern Rock later this week.

    PUBLIC FINANCES

  • The government will keep net debt at a sustainable level during the next economic cycle, Mr Darling said.

  • Net borrowing was forecast to fall from 38bn this year to 23bn in 2012.

  • Government departments will save a further 30bn by 2010, on top of 20bn of savings already achieved, the chancellor said.

    DEFENCE/TERROR/CRIME

  • Mr Darling allocated an extra 400m for military operations abroad this year.

  • He announced a new single budget for the police, security services and other agencies to deal with terrorism, to rise by 1bn a year to 3.5bn in three years' time.

  • Extra spending on the Home Office and Ministry of Justice is to rise to 20bn by 2010, Mr Darling said.

    ENVIRONMENT, TRANSPORT AND OVERSEAS AID

  • Mr Darling said aviation duty would be paid on flights, rather than individual passengers.

  • An extra 200m will be given for free pensioner bus travel next year, he added.

  • By 2010, the transport budget will rise to 14.5bn a year, including projects to widen some motorways.

  • The Department for the Environment, Food and Rural Affairs budget will rise to 4bn in three years' time, including 800m by 2010 for flood defences.

  • The overseas aid budget will rise to 9bn by 2010.

    BENEFITS AND PENSIONS

  • The amount of child maintenance a family can receive without it affecting their benefits will double from 20 a week to 40 a week by 2010.

  • Pension credits will rise 5 a week from next April for single people and 7.65 for couples.

    CULTURE

  • There would be an inflation increase for arts and culture spending, Mr Darling said. The budget for the Department for Culture, Media and Sport will rise to 2.2bn in three years.

    By 2010, there will be 460m spent on the British Council, the BBC World Service and the launch of BBC Farsi and Arabic TV channels.

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