VAT

Temporary 2.5 per cent cut in VAT, from 17.5 per cent to 15 per cent, to encourage spending and boost the retail sector. Estimated to cost £12.5 billion

INCOME TAX

New 45 per cent tax rate for those earning more than £150,000 a year to be introduced after 2011

BASIC RATE INCOME TAX

Extension of the £2.7 billion package introduced in May to head off the row over the abolition of the 10p tax band

CORPORATION TAX

Planned rise from 21p to 22p for small businesses to be delayed

FOREIGN PROFITS TAXATION

Abolition of tax on foreign dividends multinational businesses receive from their overseas subsidiaries, to cost £300 million

SMALL FIRMS GUARANTEE SCHEME

Extension of scheme which under which Government guarantees 75 per cent of risk of bank loans

FUEL AND VEHICLE EXCISE DUTY

Extension of postponement of increase in fuel duty

Postponement of proposed rise in duty for older cars

PUBLIC BORROWING

Expected to peak at around £120 billion in 2010-11

PUBLIC SPENDING

Advancement of future public spending plans with extensive investments in schools, hospitals, transport networks and social housing

GROWTH

Economy in 2009 expected to shrink between -1 per cent and -1.5 per cent, far below Budget forecasts of 2.25 per cent to 2.75 per cent growth in 2009

PROPERTY

Possible three-month grace period for homeowners facing repossession

STAMP DUTY

Relaxation of rules for property investment funds

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