This week the Chancellor delivered his annual Budget address to Parliament, announcing a number of measures which will mean good news for Warwick and Leamington, and for the whole country.

The Environment

• New vehicle tax bands from 2009 will reward the drivers of the cleanest cars and introduce higher first year rates to influence purchasing choices
• Britain is taking the lead in Europe, calling on the EU to commit to legally binding carbon reduction targets
• New funding to advise consumers on how to make their homes greener
• Increasing the climate change levy from April 2008, to encourage businesses to reduce their carbon footprint
• All new homes to be zero-carbon by 2016. All new non-domestic buildings to be zero-carbon by 2019. This will save an estimated 75 million tonnes of CO2 over thirty years.
• We will impose charges and legislation to eliminate single-use plastic bags if retailers do not take voluntary action

Child Poverty

• Tackling child poverty has been a major commitment of this government. Since 1997 we have lifted 600,000 children out of poverty. By 2010 we aim to halve child poverty, giving 250,000 more children a better future
• From April 2009, Child Benefit for the first child will increase to £20 per week and Child Tax Credit will increase by £50 a year above indexation
• We will invest £125 million over the next four years in piloting new schemes to promote parental employment, raising family incomes and improving the opportunities for children

Support for Pensioners

• From April this year, an additional 600,000 pensioners will be exempt from income tax
• A guaranteed minimum income for pensioners of £124 per week from April
• Winter fuel payments to over-60s raised  from £200 to £250, and for the over-80s from £300 to £400 to help pensioners cope with the global rise in energy prices

Other measures

• The basic rate of income tax will fall by 2p from April
• Alcohol tax increased by 6% to help curb binge drinking behaviour
• Tax loopholes closed to generate an extra £500 million per year in revenue
• The creation of a £30 million fund to give secondary school science teachers extra training
• Corporation tax main rate to fall from 38% to 28% next month

The Chancellor's Budget builds on Labour's record in promoting opportunities for children and taking action against climate change. We know that the world economy faces uncertain times ahead: markets are faltering, energy prices rising and the credit crunch is beginning to bite. This Budget provides stability for the British economy. It will be a challenging year ahead, but we are well placed to weather the turbulence and we expected continued economic growth and prosperity.