Budget 2006 A Strong and Strengthening Economy : Investing in Britain's Future : Economic and Fiscal Strategy Report and Financial Statement and Budget Report, March 2006

The Budget sets out the Governments plans for taxation, public spending and economic growth for the coming year. Details announced include: an annual growth rate of 2.5 per cent for 2006-07 with a forecast of 2.75 to 3.25 per cent for 2007-08; an inflation rate of two per cent this year; and public sector borrowing on course for a £16bn surplus over the economic cycle ending in 2010-11, with net borrowing set at £37 billion for this year and £36 billion next year, falling to £23 billion in the year to 2010-11. Measures announced in the 2006 Budget include: i) the climate change levy to be indexed in line with inflation from 2007, a new vehicle excise duty rate of £210 for the least fuel efficient cars (4x4 cars or SUVs) and the establishment of a new £1bn energy and environmental research institute funded by government and private industry; ii) measures to help to single parents into work and tackle child poverty including an increase in child benefit, child tax credit and childcare vouchers and a top-up to child trust fund accounts at the age of seven; iii) an increase in duty of nine pence on cigarettes and one pence on beer, with a freeze in duty on whisky and other spirits; iv) the exemption on stamp duty raised to £125,000 and a rise in the level of inheritance tax from £275,000 to £325,000; v) the level of investment in schools to rise from £5.6 billion to £8 billion a year; vi) free off peak national bus travel for pensioners in every part of the country; and vii) funding, in partnership with commercial sponsorship, to support top athletes to prepare for the 2012 Olympics.