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Drinkers and smokers hit in 'responsible' Budget

Drinkers and smokers hit, as Darling delivers ''responsible'' Budget

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It was billed as the boring Budget - and that's what Alistair Darling delivered. Labour MPs loyally cheered him at the end. But it was more from a sense of relief that there were no great surprises or shocks.

Mr Darling set out to portray himself as a reliable and trustworthy Chancellor who could steer the country through the turbulent economic storm blowing across from the United States. He almost sought to make a virtue from having little room for manoeuvre because of the worsening economic situation.

Green measures were as expected, child benefits will go up and there was an increase in winter fuel payments for the elderley. New measures to encourage shared ownership for key workers were announced, but there was no mention of help for first-time buyers. As ever, 'sin' taxes on beer, wine, spirits and cigarettes rose, but there was no mention of changes to tax bands or national insurance.

The Budget and you:

• 14p on a bottle of wine.

• 4p on a pint of beer.

• 11p on a pack of fags.

• Compulsory charge for plastic bags if voluntary enforcement by companies doesn't work.

• More polluting cars to pay higher road tax.

• Increased winter fuel payment for over 60s.

Booze and fags - 11p on pack cigarettes, 4p on a pack of cigars. Beer and lager up 4p pint, wine 14p a bottle, spirits 55p a bottle. Alcohol duties to rise 2% above inflation for next four years. All to take effect from midnight on Sunday.

Benefits - Number of children living in child poverty has halved since 1997. From October 2009 a family with one child on the lowest income will gain up to £17 a week, lifting another 150,000 out of poverty.

Child benefit - From April, 2009 child benefit will increase from £18.10 to £20 a week.

Changes in child tax credits - Family with two children earning £28,000 a year will be £130 a year better off. This will take a further 150,000 out of child poverty.

Energy companies to be 'worked with' on a voluntary and forced basis to help those in fuel poverty.

Bringing forward proposals to reform housing benefit to ensure work pays. From 2010 those in incapacity benefits will attend assessment centres.

Transport and motoring - New car 'showroom' tax, with the biggest and most polluting cars costing up to £950 more from 2010.

New funding to develop road pricing, inviting tenders for results to be looked at next year.

Fuel duty rise postponed to October

Environment - £800million environment fund to be used to promote new technology in developing countries. Target to reduce emissions increased from 60% to 80% by 2050.

Plastic bags - Legislation to be introduced in 2009 charging on bags if voluntary efforts by companies not good enough.

Green homes - £26million fund to help people make their homes more energy efficient. Non-domestic new buildings to be carbon neutral by 2019.

Green transport - Revenue from air duty to be increased by 10%.

Green cars - From 2009 new bands for cars based on carbon dioxide emission. This with less than 130 gramms emissions there will be no road tax in the first year, but a higher rate for higher polluters. Capital allowance for small businesses increased on greener business fleets.

Winter fuel payments - up from £200 to £250 for over the 60s. For over the 80s, £300 to £400.

Savings - From April, ISA limit to rise to £7,200. Cash element to £3,600. Also, 'Savings gateway' launched nationally in 2010.

Taxation - £30,000 non-domiciled foreigners charge to come in from April.

Education - New money (£200million) and expansion of London model developedfor improving schools. £10m over next five years to be added to £30million science fund.

Pensions - From April, £124 a week minimum pension confirmed with the pension credit top up.

Business - Corporation tax is the lowest in G7 currently. Confirmation that the main rate falls from 38% to 28% next month.

Small and medium enterprises - new CGT regime will come in next month. Funds through Small Loans Guarantee scheme to be extended to all SMEs and increased by £60million.

Capital fund of £12million to encourage more women entrepreneurs.

Military - £900m more on military equipment this year, £2bn more overall. Spending to increase in real terms of 1.9% a year.

The economy - Darling claims the UK is 'better placed than most countries' to face global slowdown.

Forecast growth in other developed countries is less than the UK's.

Economic growth to be up to 2% this year, rising to 2.5 to 3% by 2010.

Inflation to be higher until it returns to forecast levels (ie closer to 2%) in 2009.

Borrowing and spending - Current year borrowing to be £8billion red. Predicts Govt will meet golden rule over economic cycle.

Borrowing and debt below 1997 levels. Now at 36.6% of GDP

Borrowing to rise to 2.6% of national income next year, falling to 1.3% by 2012/20013

Debt lower than US, Euro area and Japan.

By 2011 longest sustained expansion of investment in public services since 1945

Public spending will grow by 2.2% over coming year. Waiting lists down, he claims, and transport spending 90% higher.