Budget 2004

He said debt this year is 33% of national income and that our National Debt was lower than that of Britain's main competitors. His borrowing forecast was 3.4% of GDP this year.

Euro

He said there would be no further euro assessment this year and there would be a further Euro assessment next Budget.

Public spending

NHS to get 10% cash rise every year to 2008

Transport and Defence and the Home Office to get real terms spending increase.

Extra funds for science and education. Education spending to be £8.1bn by 2008.

Every secondary school to be refurbished by 2015.

Training for everyone up to the age of 18

Funds for Sure Start and early education to rise by 17%. 1,700 children centres by 2008 towards goal of a children centre in every community.

Cutting bureaucracy

20,000 civil servants to be moved out of Whitehall to the regions.

Department of Work and Pensions to lose more 30,000 staff over four years, with its budget cut by more than 5% by 2008.

Customs and Excise and the Inland Revenue to be merged and to lose 14,000 jobs.

All departments will cut back room administration budgets by at least 5% by 2008.

Business

Distributed profits on small companies to be taxed at 19%, bringing them into line with other companies. Investment allowances for the smallest businesses increase from 40 per cent to 50 per cent for one year initially.

Firms with turnover under £58,000 to be exempt from VAT. For the film industry a tax loophole has been closed. From now on tax reliefs will be paid directly to the film-makers themselves. The new relief, will be set at a new and higher level of 20%.

Climate change levy, rates frozen and the number of businesses who can benefit from 80 per cent discounts extended.

Aggregates levy rates frozen and in in Northern Ireland relief extended to cover all aggregates.

Charities

International development aid to be increased.

There is to be a cash incentive to encourage small and medium sized firms to set up their own payroll giving schemes.

With 2005 the British Year of the Volunteer, the government will consider new resources for two volunteering initiatives: first to encourage and extend mentoring; and second to encourage national community service by young people.

The Chancellor announced matched funding for a year for the Commonwealth Education Fund which supports the objective that by 2015 every child everywhere has primary education and matched funding also for the Sports Relief charity which will work with Comic Relief in tackling AIDs and poverty in Africa.

Other measures

£1bn extra funding for local councils.

£5bn raised from sale of public land