WEDS PM: The Budget - latest

Apr 22 2009 By Andrew Jackson

12.54pm

There will be £250 million this year and £400 million in 2010/11 for an additional 54,000 places in sixth forms and further education colleges, with consequential provisions for Scotland, Wales and Northern Ireland.

To increase mortgage lending, the Chancellor announced the introduction of a scheme to guarantee securities backed by mortgages

12.52pm

There will be additional support for people who have been out of work for 12 months. From January everyone under the age of 25 who has been jobless for 12 months will be offered a job or a place in training with additional money on top of benefits for those in training.

12.47pm

Inflation is expected to continue falling sharply, reaching 1% by the end of this year. The Bank of England inflation target remains unchanged at 2%.

RPI inflation is forecast to remain negative, falling to minus-3% by September, before moving back above zero next year.

12.46pm

Mr Darling said the crisis that started in the developed economies had spread to emerging and developing countries.

"For the first time since the Second World War, the world economy is expected to contract this year."

He said "considerable economic uncertainty" over the last few months had "fully justified the action we, and other countries, have taken to support business and people.

"Since the autumn, we have put the banks on a stronger footing, cleaning up their balance sheets, and helping boost bank lending.

"As a result, banks will be able to lend billions of pounds more this year and next, to homebuyers and businesses.

"Getting credit flowing again is the essential precondition to economic recovery."

12.43pm

Mr Darling predicted the economy would start growing again ``towards the end of the year.''

He continued: "I am also confident that, as the global economy recovers to double in size over the next 20 years, Britain can, and will be, a world leader.

"This Budget will help make sure we seize this opportunity."

He added: "As I told the House in November, we and other countries have been battling against a succession of shocks which have hit the world economy.

"At the end of 2007, problems in international mortgage markets began to put a damaging squeeze on credit."

He said the collapse of Lehman Brothers "shattered already fragile confidence and brought the international financial system to its knees.

"Since then, an extraordinary international financial crisis has fed into the wider economy, causing a steep and widespread world recession."

12.42pm

Chancellor Alistair Darling today promised a Budget to speed economic recovery by protecting jobs and spreading prosperity.

Opening his Budget speech, Mr Darling warned that Britain faced the most serious global economic turmoil for over 60 years.

But he said the Government would protect investment in schools, hospitals and other key public services, while rebuilding the financial services sector.

"Today’s Budget will continue to help people through this global recession and prepare Britain for the opportunities of the future."

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2 BUDGET Highlights

Mr Darling said the impact was being felt in every continent, country and community.

"When the world economy was plunged into deep crisis in the 1930s, the response, both nationally and internationally, was too little and too late.

"This failure to act turned a serious downturn into a prolonged depression.

"We will not repeat those mistakes again."

He said governments across the globe had taken "decisive action".

"This action, taken promptly and decisively, gives us good grounds for confidence."

He also said the Budget "builds on the substantial help for people and businesses in the Pre-Budget Report in November.

"It builds on the steps we have taken to recapitalise and restore confidence in our financial institutions.

"And it builds on the outcome of the G20 Summit in London this month, when the world’s leading economies came together to agree unprecedented co-ordinated action to speed global recovery."

12.37pm

CHANCELLOR of the Exchequer Alistair Darling rose to deliver his second Budget statement to the House of Commons at 12.31pm today.

Mr Darling said the Budget would provide help to get people back into work quickly and support businesses and homeowners facing problems.

He also said there will be measures to support investment in the growth and green industries of the future and the Government will work to rebuild Britain’s financial services.

The Chancellor said the Government had a determination to invest and grow our way out of recession. He said: "Today’s Budget will take Britain through the most serious global economic turmoil for over 60 years."

The Chancellor expects the economy to start growing again towards the end of the year.

An extraordinary international financial crisis has fed into the wider economy, causing a steep and widespread world recession.