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The Budget 'for schools and families'

Gordon Brown has delivered his Budget emphasising the importance of education and pledging his commitment to giving youngsters "the best start in life", helping hardworking families and pensioners.

The Chancellor has stressed the importance of education calling for pupils to begin school at the age of three and continue until 18.

Pledging £1.8 billion on renovation by 2007 and £1.67 billion towards computers in schools, Mr Brown said that education is "no longer about chalk and blackboards but about computers."

Families are to be helped even further with an increase of 13 per cent over the next three years in the Chancellor's pet project, child tax credits. This ensures that working families on the lowest incomes receive more help.

Low-income parents struggling with childcare costs will benefit from a big rise in state help from next month, as announced in the last Budget. Increases in the amount of childcare costs parents can claim through Working Tax Credits increase in April 2005 from 70 per cent of £135 to 70 per cent of £175. A further 10 per cent increase will be introduced in April 2006.

There will also be help available for lone parents returning to work. From April, the government will extend the number of areas where parents can receive £2,000 in the form of a return-to-work bonus.

Elsewhere, stamp duty threshold will be raised from £60,000 to £120,000 in attempt to help first time buyers and pensioners and the disabled will benefit from free local bus travel and increased winter fuel allowances of £200 and £300. Over 65s will get a £200 refund on council tax.

Motorists have been given a reprieve at least until the Autumn Budget with duty for petrol and car tax frozen, although bigger cars have seen a slight increase in road tax.

As for the 'sins', the Chancellor has put an extra 1p on beer, 4p on wine and 7p on a packet of cigarettes, but put an inflation freeze on spirits, cider and sparkling wine.

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