The 2008 Budget at a glance

Clare Francis, Site Editor

The Chancellor, Alistair Darling, has delivered his first budget speech. Is it good or bad news for consumers? We give you a run down of the main announcements...

In what was his first, and possibly last budget, Alistair Darling, Chancellor of the Exchequer, warned of tough times ahead. He remained confident that the UK economy would continue to grow but acknowledged that the ongoing turbulence in the financial markets posed significant risks.

Consumers are only too aware that the economic environment is tougher than it's been for years. Household finances are being increasingly stretched by rising food, energy and fuel prices. Borrowing costs are also on the up because of the impact of the credit crunch on institutions' ability and willingness to lend.

So did the Chancellor deliver any good news for individuals or are our finances set to be put under further strain?

Here's a run down of Darling's main announcements:

On the back of record oil prices, the planned 2p per litre increase in fuel duty has been postponed until October. However, for environmental reasons, duty on fuel will rise by 0.5p in real terms by 2010.
As part of the Government's commitment to bring 250,000 children out of poverty by 2010, Child Benefit will go up from £11 a week to £20 a week in April 2009.
Also from April 2009, the child element of the Child Tax Credit will increase by £50 a year above indexation.
Child Benefit is to be excluded from calculating income for Housing and Council Tax Benefit. This will take effect in October 2009 and the Government claims a working family with one child in the lowest income bracket, will gain up to £17 a week from this change.
Pensioners over the age of 80 will receive an additional one-off payment of £100 (£50 for households with someone aged 60 or over) alongside their winter 2008-09 winter fuel payment.
Energy firms must also increase the financial assistance they give to people using pre-payment meters from £50m to £150m a year - the Government and Ofgem will work with providers to identify how this will be implemented.
Pre-payment tends to be the most expensive way of paying for energy, yet the elderly and those on low incomes are most likely to have these meters.
The Savings Gateway, which is a savings scheme designed for those on lower incomes, will be introduced nationally in 2010. Until now it has been piloted in certain areas.
House hunters received some relief. Key workers and those on lower incomes who are buying a house through a shared equity scheme, will be exempt from stamp duty if their ownership share is less than 80%.
Smokers will see the price of a packet of cigarettes rise by 11p, while five cigars will cost 4p extra. The changes take effect from 6pm today (12 March 2008)
Duty on alcohol will increase on 17 March. Tax will rise by 4p for a pint of beer and 3p for cider. Wine will go up by 14p a bottle (3p per glass), although duty on sparkling wine will increase by 18p a bottle. The cost of spirits is set to rise by 55p.
Because of environmental concerns surrounding the huge number of plastic carrier bags British consumers use each year, the Government will introduce legislation to impose a tax on carrier bags in 2009 if retailers do not move towards introducing such a charge on a voluntary basis.
Continuing the green theme, Darling announced higher vehicle excise duty on gas-guzzlers. Drivers with Band-G cars that were first registered after March 23 2006, will see the cost of road tax rise by £100 a year. Drivers of most other vehicles will see the excise duty rise by just £5 a year and those with the lowest-emitting Band-A cars will continue to pay nothing.
Darling announced another measure which will hit those who opt for cars that emit high levels of carbon dioxide. Dubbed the 'showroom' tax, it will cost motorists who buy new cars up to £950. The levy will be introduced in 2010.