Workmanlike and risk-free: Darling’s centre ground budget

By Alex Smith / @alexsmith1982

Today’s budget was as expected: workmanlike and risk-free, with a very few sweeteners for small businesses, families and pensioners.

Those on the right will argue that it doesn’t tackle the deficit quickly enough. But, as is consistent with Labour’s wider economic policy, it was intended to focus on securing the recovery through government intervention targeted at those most in need of support. And as the IMF notes, cutting public spending too soon would jeopardise recent economic improvements.

Paul Waugh says this was the “Robin Hood Budget”, with a doubling on stamp duty allowances to £250,000, paid for by a 5% duty on homes over £1million.

But, really, the measures across the board are designed to dominate the centre ground, with a little something for everyone. As Ed Balls might say, the budget was classic, quintessential New Labour.

Some of the key points from Alistair Darling’s speech are:

* Borrowing will be £167bn this year, revised down from £178bn at the PBR as a result of the bankers’ tax and increased tax takes. Darling says it will be £163bn in 2011, £131bn in 2012, £110bn in 2013 and £74bn by 2014, bringing the deficit as GDP down from 11.8% to 5.2% over the next four years.

* Duty on cider will increase by 10% above inflation from Sunday.

* Tobacco duty will rise immediately by 1% above inflation this year, then 2%

* Fuel duty to rise by a penny in April followed by a further 1p rise in October.

* RBS and Lloyds will provide £94bn in new business loans, nearly half to small and medium-sized businesses (SMEs), over next year

* Increase of 15% in the number of central government contracts going to small and medium enterprises.

* A £270m fund to create 20,000 university places in subjects such as science, maths, engineering.

* A £2bn Green Investment bank, half provided by government and half by private investment.

* Everyone will have the entitlement to have a bank account.

* £100m set aside for repairs to local roads, £285m for improvements to motorways

* Parents of one- and two-year-old children to get an increase of £4 a week in child tax credit from 2012

* The pensioners’ higher winter fuel payment of £250 and £400 for the over-80s, guaranteed for another year.

The Guardian has more of the main details, or you can read the full speech here or download the full budget here.