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Darling tells cabinet of 'recovery' budget

2010-03-24 1 Dailymotion

<p><br /> Chancellor Alistair Darling has told the Cabinet that the Budget will have a strong focus on recovery.<br /> </p><p><br /> He briefed colleagues just hours before the final Budget ahead of this year's general election and was greeted with a round of applause according to Downing Street.<br /> </p><p><br /> Prime Minister Gordon Brown's spokesman told reporters: "This is a Budget which is going to have a strong focus on recovery. The mood was positive and I think Cabinet colleagues were encouraged by what they heard from the Chancellor."<br /> </p><p><br /> With just six weeks before the nation is expected to go to the polls, the Chancellor will have to walk a fine line as he seeks to offer voters hope for the future while beginning the grim task of spelling out where the spending axe will fall.<br /> </p><p><br /> Officials have made clear that an unexpected "windfall" from better-than-expected Government borrowing figures - put by some experts at £12 billion - will be used primarily to reduce the £178 billion deficit rather than fund a spending spree.<br /> </p><p><br /> There will be some populist measures, including an expected announcement to scrap stamp duty for first-time buyers on homes costing up to £250,000 - saving up to £2,500 in tax.<br /> </p><p><br /> It is thought there will be a new crackdown on tax evasion, with punitive fines for wealthy investors who try to hide money in offshore tax havens, intended to send a political message that the economic pain will be spread fairly.<br /> </p><p><br /> Mr Darling is expected to order the part-nationalised Royal Bank of Scotland and Lloyds to provide a further £90 billion in business lending after complaints that the Government has not done enough to restore the flow of credit.<br /> </p><p><br /> There will be a new requirement on the banks to provide a basic account to every adult UK citizen, intended to address the problems of "financial exclusion" faced by many of the poorest people in the country.<br /> </p><p><br /> The Chancellor is expected to unveil details of a £2 billion "green" investment fund to finance projects such as wind farms and other renewable energy sources, although it is not expected to come on stream until next year.<br /> </p><p><br /> Tory leader David Cameron said Labour has "completely run out of ideas" and is unable to offer the leadership needed to take the country out of recession."<br /> </p><p><br /> Liberal Democrat leader Nick Clegg said: "This should be a Budget of honesty about the state of the Government finances. It should be a Budget of fairness, putting money back in the pockets of people who desperately need a break."<br /> </p>

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