Main Points

EconomyPublic borrowing £23 billion last year now forecast to be £12 billion this year and £6 billion next;

Growth forecast at between 2.25 per cent and 2.75 per cent next year and 1.52 per cent in 1999-2000.

Inflation forecast to rise to about 3 per cent by 1998 before returning to target of 2.5 per cent by end of 1999.

Taxation

Budget to introduce anti-tax avoidance measures;

Advance Corporation Tax to be scrapped in April 1999;

Main corporation tax rate cut by 1 per cent to 30 per cent from April 1999;

10p starting rate of tax to be introduced "when prudent to do so";

Working families tax credit to be introduced;

Scope for reform of national insurance for low-paid to be considered.

Pensioners

Every pensioner household to get £20 extra £50 for households on income support to help with fuel bills.

Employment

Every lone parent coming on to benefit to be offered help to find work;

Nationwide pilot training schemes;

Wage responsibility urged.

Savings

New individual savings accounts introduced from April, 1999.