This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-21850011

The article has changed 19 times. There is an RSS feed of changes available.

Version 15 Version 16
Budget 2013: George Osborne halves growth forecast but insists plan is working Budget 2013: George Osborne halves growth forecast but insists plan is working
(35 minutes later)
Chancellor George Osborne has insisted his economic medicine is working, despite being forced to slash growth forecasts for the UK in his Budget.Chancellor George Osborne has insisted his economic medicine is working, despite being forced to slash growth forecasts for the UK in his Budget.
In a package of measures aimed at "those who want to work and get on" he cut corporation tax to 20% and froze petrol duty rises.In a package of measures aimed at "those who want to work and get on" he cut corporation tax to 20% and froze petrol duty rises.
He also cancelled alcohol duty rises, cut beer by 1p a pint and unveiled measures to boost the housing market.He also cancelled alcohol duty rises, cut beer by 1p a pint and unveiled measures to boost the housing market.
Labour said it was a "more of the same Budget from a downgraded chancellor".Labour said it was a "more of the same Budget from a downgraded chancellor".
Battling interruptions in a rowdy House of Commons, Mr Osborne said he wanted to "level" with people about "hard decisions" that had to be taken. Ed Miliband said Mr Osborne had broken the deal he made with the British public when the coalition came to power, that all the pain of austerity would be worth it when the "good times" returned.
He said that although it was taking longer than expected "we are, slowly but surely, fixing our country's economic problems". "Three years on, what does he say? Exactly what he said three years ago," said the Labour leader.
"If you want to work hard and get on, we are on your side," said the chancellor, adding it was a Budget "for an aspiration nation". "We still need four more years of pain, tax rises and spending cuts.
"In other words, after all the misery, all the harsh medicine, all the suffering by the British people, three years, no progress, deal broken."
Mr Osborne admitted it was taking longer than expected but insisted "we are, slowly but surely, fixing our country's economic problems".
He told MPs: "This is a Budget that doesn't duck our nation's problems. It confronts them head on. It is a Budget for an aspiration nation."
BBC Political Editor Nick Robinson said it was "a very political speech from a man in a very tight economic straitjacket".BBC Political Editor Nick Robinson said it was "a very political speech from a man in a very tight economic straitjacket".
In other Budget measures:In other Budget measures:
Figures from the Office for Budget Responsibility suggest the government's efforts to cut the deficit - the difference between money spent and earned in a year - have stalled and it will remain stuck at about £120bn for three years.Figures from the Office for Budget Responsibility suggest the government's efforts to cut the deficit - the difference between money spent and earned in a year - have stalled and it will remain stuck at about £120bn for three years.
And Business Secretary Vince Cable refused to predict when the "age of austerity" might end - although he thought it "unlikely" to last until 2020.And Business Secretary Vince Cable refused to predict when the "age of austerity" might end - although he thought it "unlikely" to last until 2020.
It all meant Mr Osborne had little room for manoeuvre when it came to tax giveaways - but he found some extra cash by squeezing public spending further and other measures.It all meant Mr Osborne had little room for manoeuvre when it came to tax giveaways - but he found some extra cash by squeezing public spending further and other measures.
This allowed him to bring forward the introduction of a £10,000 income tax threshold by a year, to 2014 - in a move that pleased the Lib Dems, who campaigned on the issue at the last election.This allowed him to bring forward the introduction of a £10,000 income tax threshold by a year, to 2014 - in a move that pleased the Lib Dems, who campaigned on the issue at the last election.
Tory backbenchers cheered the announcement that small businesses would get a £2,000 allowance before paying employer National Insurance contributions, a move Mr Osborne described as "taking tax off jobs".Tory backbenchers cheered the announcement that small businesses would get a £2,000 allowance before paying employer National Insurance contributions, a move Mr Osborne described as "taking tax off jobs".
He ignored pre-Budget calls by Vince Cable and others to borrow more to boost growth with a big building programme.He ignored pre-Budget calls by Vince Cable and others to borrow more to boost growth with a big building programme.
But he did announce £2.5bn of spending on infrastructure paid for by a fresh public spending squeeze. Details of where the axe will fall will be announced in June when the government unveils its spending review.But he did announce £2.5bn of spending on infrastructure paid for by a fresh public spending squeeze. Details of where the axe will fall will be announced in June when the government unveils its spending review.
He also announced that the Bank of England Monetary Policy Committee had been given an updated broader remit, but keeps its 2% inflation target.He also announced that the Bank of England Monetary Policy Committee had been given an updated broader remit, but keeps its 2% inflation target.
Labour leader Ed Miliband told MPs Mr Osborne's message had not changed since the coalition had come to power, that voters would suffer four years of tax rises and spending cuts before "good times" returned. Labour leader Ed Miliband mocked the chancellor's failure to make any reference to Britain's loss of its Triple A rating with credit agencies during his hour long budget speech.
"Three years on, what does he say? Exactly what he said three years ago.
"We still need four more years of pain, tax rises and spending cuts. In other words, after all the misery, all the harsh medicine, all the suffering by the British people, three years, no progress, deal broken."
The Labour leader said the Office for Budget Responsibility had confirmed living standards would fall over the course of the Parliament, meaning families would be worse off in 2015 than they had been in 2010.
And he mocked the chancellor's failure to make any reference to Britain's loss of its Triple A rating with credit agencies during his hour long budget speech.
He also asked the chancellor how details of the Budget came to be published via a tweet from the Evening Standard before the speech had been delivered.He also asked the chancellor how details of the Budget came to be published via a tweet from the Evening Standard before the speech had been delivered.
Ahead of the Budget the government announced plans for some parents in the UK to be able to claim back up to £1,200 a year for each child - or 20% of childcare costs - from 2015.Ahead of the Budget the government announced plans for some parents in the UK to be able to claim back up to £1,200 a year for each child - or 20% of childcare costs - from 2015.
Mr Cameron said the plans, expected to cost £1.4bn, would be a "boost direct to the pockets of hard-working families" but it has been criticised in sections of the press for penalising stay-at-home parents.Mr Cameron said the plans, expected to cost £1.4bn, would be a "boost direct to the pockets of hard-working families" but it has been criticised in sections of the press for penalising stay-at-home parents.
The Scottish National Party described Mr Osborne's statement as a "miserable Budget" which "just continues along the austerity path that is clearly failing".
Plaid Cymru said the £2.5bn in infrastructure spending was just a "fraction" of what was actually needed.
Green Party MP Caroline Lucas said it was "yet another budget that treats the public with contempt, continuing to peddle the myth that our national debt and deficit increased due to excessive public spending rather than bank bailouts".
UKIP leader Nigel Farage dismissed Mr Osborne's statement as a "Budget for headline writers" that failed to tackle "the serious problems in our economy".
Meanwhile, members of the UK's largest civil service union, the Public and Commercial Services Union, are staging a 24-hour strike on Wednesday in a dispute over pay, pensions and working conditions.Meanwhile, members of the UK's largest civil service union, the Public and Commercial Services Union, are staging a 24-hour strike on Wednesday in a dispute over pay, pensions and working conditions.
Government departments, driving test centres, museums and job centres are among workplaces hit, while meetings at the Welsh assembly have been rearranged because Labour and Plaid Cymru members will not cross a picket line.Government departments, driving test centres, museums and job centres are among workplaces hit, while meetings at the Welsh assembly have been rearranged because Labour and Plaid Cymru members will not cross a picket line.
A rally was being held at Westminster while Mr Osborne delivered his Budget.A rally was being held at Westminster while Mr Osborne delivered his Budget.