Budget: what it's expected to hold

Last Modified: 12 Mar 2008
By: Channel 4 News

As Alistair Darling prepares to deliver his first budget in the face of a worsening economic climate, what is it expected to contain?

1. Green issues

It's thought Alistair Darling could announce a showroom tax of up to £2000 on the worst polluting vehicles. There are also plans to stop stores handing out free plastic bags.

2. Petrol prices

The chancellor's under pressure to freeze a planned two pence rise in fuel duty for six months, however, despite the emphasis on environmentally friendly polices.

3. Fuel prices

It's thought energy firms could be on the chancellor's tax hike hit-list after announcing record profits while customers were subjected to huge price rises.

4. Cigarettes and alcohol

As usual, the chancellor's expected to hammer drinkers and smokers. The cost of a packet of twenty cigarettes will almost certainly go up.

Tax on beer and wine is also likely to rise, and for the first time in years it's thought duty on spirits will increase.

5. Mortgages

The chancellor is expected to announce measures to increase the availability of long-term mortgages and kick-start the wholesale money markets.

Darling is expected to announce plans for a system in which mortgages would be graded according to risk, with the least risky loans given a "gold standard" kitemark.

6. Non-domiciles

The chancellor is expected to address the contentious issue of how much tax foreign workers resident in the UK should pay.

He has mooted the idea of a £30,000 flat-rate levy in the past, but this has raised concerns it might deter investment in the UK and harm the City of London.