Unexpectedly, Darling announced a new 50% tax band which will be introduced in April 2010 and will affect those earning £150,000 or more a year.
Measures to improve the lot for pensioners proved to be a welcomed key feature which includes increasing the savings limit for pensions credit to £10,000 - benefiting 500,000 people. The higher winter fuel allowances announced last year will be maintained.
Cigarettes and alcohol will both go up by 2%. Fuel is predicted to rise by 2p in September, then by 1p a litre each April for the next four years.
Predictably, Darling revealed that economic recovery will take longer than previously forecast. Highlights of the 2009 Budget include a major scheme to ease unemployment, investment in the housing market and incentives for savers - notably the raising of the ISA limit from £7,200 to £10,200.
Here's a run-down of Darling's main announcements:
Homeowners and buyers
A package to support the falling house market included the extension of the stamp duty 'holiday' for purchases of properties costing less than £175,000. To kick start the housing market the Chancellor offered an £80m extension to the HomeBuy Direct scheme - the Government shared equity mortgage scheme. As part of this support, £100m is being provided for local authorities to build new energy-efficient housing.
A further £500m will go to supporting stalled housing projects, due to the recession, including £100m for local authorities to build energy efficient homes. Finally, a £50m budget to upgrade housing for the armed forces was revealed.
Savers
With interest rates at an all time low the Government is clearly keen to get Britain saving again. The long awaited increase in the limit on ISAs has been welcomed. The allowance will increase from £7,200 to £10,200, the cash element of which goes up from £3,600 to £5,100.
Only the over-50s will benefit this tax year - although they will have to wait until October before they can invest the extra allowance. The new ISA limit won't take effect for the under-50s until April 2010.
Pensioners
The Government is introducing measures to help lower-income pensioners. From November, the savings limit for pensions credits will rise from £6,000 to £10,000. This will benefit more than half a million pensioners and the Chancellor said they will be around £4 per week better off as a result.
The winter fuel allowance is to be maintained at the higher level too - £250 for over 60s and £400 for over-80s - for another year.
Job seekers
An overall £2billion fund to help jobseekers was clearly welcomed - particularly as unemployment is tipped to reach the three million mark by next year.
From January, everyone under the age of 25, who has been out of work for 12 months, will be offered a job or a place in training.
The Chancellor will spend more £260m of new money for training and subsidies to help young people get the skills and experience needed. In addition, the Government will create or support up to 250,000 jobs in deprived areas. And Darling announced £1.7bn of additional resources for the Job Centre Plus network, £250m funding to help people get work experience in growth industries and funding to create 54,000 new places in sixth form education.
Statutory redundancy pay will increase from £350 per week to £380 per week. The Chancellor did not say when this rise would come into force, but said the measure was necessary to help the increasing number of people being made redundant due to the recession.
Tax and pensions
To pay for these schemes, the Chancellor announced tax increases targeted at the better off.
A new 50% tax band will be introduced in April 2010 affecting those earning £150,000 or more (this is a change from the 45% band that was initially announced in December's pre-Budget Report).
These higher tax-payers will also see the tax-relief they receive on pension contributions fall from April 2011. The Government plans to reduce the tax relief to 20%, although it will consult with the industry before the exact details are announced.
Income tax personal allowances will be restricted for those with an income of £100,000 or more from April 2010.
Families
Child tax credit will rise by £20 in April 2010. New measures to help disabled children were also announced. They will receive £100 a year to be invested into their Child Trust fund - this annual contribution will be £200 for the severely disabled.
The introduction of tax relief for grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension.
Motorists
Not good news for drivers - fuel duty to rise by 2p per litre from September, then by 1p a litre above indexation each April for the next four years.
In a bid to boost the struggling motor industry, a 'scrappage' scheme will be introduced. This will offer motorists a £2,000 rebate off the cost of a new car when they trade in a vehicle over 10 years old. This will be effective from next month until March 2010.
The Government has already announced that it will provide a £5,000 subsidy for the purchase of electric and hybrid cars, as well as providing £20m for local councils to install electric vehicle charging points.
Drinkers and smokers
Tobacco duty will rise by 2% from 6pm today, adding 7p to the cost of a packet of 20 cigarettes. Alcohol duty will go up by 2% from midnight - this will add 1p to the average cost of a pint of lager.
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