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:
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.
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.
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.
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.
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.
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.
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.
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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