This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8402769.stm

The article has changed 33 times. There is an RSS feed of changes available.

Version 17 Version 18
UK recession 'worse than thought' UK recession 'worse than thought'
(9 minutes later)
Chancellor Alistair Darling has said the UK recession was worse than he predicted but will start to grow again at the start of 2010.Chancellor Alistair Darling has said the UK recession was worse than he predicted but will start to grow again at the start of 2010.
He told MPs the economy would shrink by 4.75% in 2009 compared with his Budget estimate in April of 3.5%.He told MPs the economy would shrink by 4.75% in 2009 compared with his Budget estimate in April of 3.5%.
And the public finances were also deeper in the red with a deficit of £178bn this year compared with the £175bn he had predicted.And the public finances were also deeper in the red with a deficit of £178bn this year compared with the £175bn he had predicted.
He has also unveiled a bank bonus tax and changes to National Insurance. He has also unveiled a bank bonus tax and changes to corporation tax.
He said the government wanted to promote growth without "putting the recovery at risk".He said the government wanted to promote growth without "putting the recovery at risk".
KEY POINTS SO FAR Economy to shrink by worse than expected 4.75% this yearNew 50% tax on banker bonusesHousehold boiler scrappage scheme1p rise in corporation tax for small firms scrappedTax rebates for electric cars and wind turbinesBingo duty falls from 22% to 20%State pension to rise by 2.5% next yearMore help for young unemployed Economic challenges for the parties LIVE: In text and videoKEY POINTS SO FAR Economy to shrink by worse than expected 4.75% this yearNew 50% tax on banker bonusesHousehold boiler scrappage scheme1p rise in corporation tax for small firms scrappedTax rebates for electric cars and wind turbinesBingo duty falls from 22% to 20%State pension to rise by 2.5% next yearMore help for young unemployed Economic challenges for the parties LIVE: In text and video
Mr Darling has been under pressure to show how Labour would halve the UK's budget deficit in four years.Mr Darling has been under pressure to show how Labour would halve the UK's budget deficit in four years.
He claimed government action to pump money into the economy had made a "real difference" to families and businesses. VAT will return to 17.5% on January 1 as planned, with no other changes in VAT, the chancellor confirmed.He claimed government action to pump money into the economy had made a "real difference" to families and businesses. VAT will return to 17.5% on January 1 as planned, with no other changes in VAT, the chancellor confirmed.
He said unemployment in the UK would keep rising for some time but said promoting employment remained a top priority for the government.He said unemployment in the UK would keep rising for some time but said promoting employment remained a top priority for the government.
From next month, no-one under 24 needs to be unemployed for longer than six months - down from the current 12 months - before being guaranteed work or training.From next month, no-one under 24 needs to be unemployed for longer than six months - down from the current 12 months - before being guaranteed work or training.
Mr Darling also unveiled guarantees of a training or education place for every 16 and 17-year-old to be available to school-leavers again in September 2010.
He also announced that a 1p increase in Corporation Tax for smaller companies is to be deferred, leaving the 2010 tax rate unchanged.
GUIDE TO PRE-BUDGET REPORT Each year the chancellor delivers two reports to MPs, updating them on the state of the economy and planned fiscal changes.GUIDE TO PRE-BUDGET REPORT Each year the chancellor delivers two reports to MPs, updating them on the state of the economy and planned fiscal changes.
The pre-Budget report (PBR) takes place in the autumn with the Budget each spring.The pre-Budget report (PBR) takes place in the autumn with the Budget each spring.
This year's PBR will be Mr Darling's third since he became chancellor in June 2007 and, with an election imminent, his most important.This year's PBR will be Mr Darling's third since he became chancellor in June 2007 and, with an election imminent, his most important.
You can watch BBC TWO's pre-Budget report special - together with text commentary and expert analysis and reaction on the BBC website from 1130 to 1430 GMT
Nick Robinson's view Send us your commentsNick Robinson's view Send us your comments
Mr Darling also unveiled guarantees of a training or education place for every 16 and 17-year-old to be available to school-leavers again in September 2010.
He also announced that a 1p increase in Corporation Tax for smaller companies is to be deferred, leaving the 2010 tax rate unchanged.
The minimum number of hours those over 65 need to work to receive Working Tax Credit is also to be reduced.The minimum number of hours those over 65 need to work to receive Working Tax Credit is also to be reduced.
The basic state pension will rise by 2.5% in April, a real-terms increase of nearly 4%. From next year's Budget, Bingo Duty to be cut from 22% to 20%.The basic state pension will rise by 2.5% in April, a real-terms increase of nearly 4%. From next year's Budget, Bingo Duty to be cut from 22% to 20%.
Mr Darling is not expected to set out detailed spending plans for the years after 2010-11 but he may single out areas in England, such as schools, hospitals and police to be "ring-fenced" from future cuts as the battlelines are drawn for next year's general election.Mr Darling is not expected to set out detailed spending plans for the years after 2010-11 but he may single out areas in England, such as schools, hospitals and police to be "ring-fenced" from future cuts as the battlelines are drawn for next year's general election.
The tax rate for the bank on that pool of bonuses would be more than 50% Robert Peston, BBC Business Editor Peston: How tax will work
A number of new green initiatives are expected in the report, with tax rebates for electric cars and wind turbines.A number of new green initiatives are expected in the report, with tax rebates for electric cars and wind turbines.
Mr Darling announceda boiler scrappage scheme along the lines of the car scrappage scheme.Mr Darling announceda boiler scrappage scheme along the lines of the car scrappage scheme.
The chancellor's statement sets the tone for the economic debate in the run-up to the election - which must be held by next June.The chancellor's statement sets the tone for the economic debate in the run-up to the election - which must be held by next June.
The Lib Dems argue neither of the main parties are being honest about the spending challenges facing the next government and the extent of cuts that will be needed.The Lib Dems argue neither of the main parties are being honest about the spending challenges facing the next government and the extent of cuts that will be needed.