06/12/2006

Brown delivers pre-Budget report

Chancellor Gordon Brown has delivered his pre-Budget report, outlining plans to provide more funding for education and defence while increasing fuel and air duty.

Mr Brown announced extra spending of £36 billion for education over the next four years, as well as an extra £600 million for military operations in Iraq and Afghanistan and another £84 million for intelligence and counter-terrorism.

Universities would also receive £60 million a year for research, while the Chancellor also announced consultations on £2,000 bursaries for 'looked after' children - those in the care of local authorities - in order to encourage them to go to university.

Mr Brown also announced that fuel duty would increase by 1.25p per litre from midnight, while air passenger duty will double, rising from £5 to £10.

In a green move, stamp duty on new 'carbon neutral' homes could also be scrapped, the Chancellor announced.

A basic rise in the state pension was also announced - it will rise by 3.6% from next April, while the pension credit minimum guarantee will also rise by £5 per week for a single person and £7.65 for a couple.

A further 300,000 pensioner and low income households will also be offered free insulation and central heating, Mr Brown announced.

(KMcA)

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