The Budget: Borrowing to hit record £175 billion

In a grim Budget statement, Mr Darling outlined the full depth of the economic crisis.

But he insisted public finances would get back on track with a halving of borrowing within four years as the economy began to recover from the end of the year.

Despite the bleak figures, Mr Darling insisted the economy would begin to recover from the end of the year.

But Tory leader David Cameron launched a scathing attack on the Government's handling of the economy.

He said: "As of today any claim they have ever made to economic competence is dead, over, finished."

Mr Darling warned that output would shrink by 3.5% this year - more than doubling his previous forecast - as the country battled with the worst global downturn in 60 years.

He also said inflation would plunge to minus three per cent by September.

The Chancellor said the planned new top income tax rate of 45% on incomes above £150,000 will be increased to 50% and take effect from next April - a year earlier than planned.

And from April 2011, pension tax relief would be restricted for those with incomes over £150,000.

The Budget Live

Read the live budget report with Carol Chleboun and Paul Dixon from PricewaterhouseCoopers in Newcastle.

12:36

Alistair Darling expects economy to start growing by end of this year, double in size within 20 years. This Budget will see Britain through economic turmoil. Getting credit flowing again essential for recovery.

12:39

VAT reduction will continue until December, Chancellor confirms.

12:43

Carol Chleboun: This will be a Budget for investment. A possible focus on electric vehicles, batteries for electric vehicles, wind farms, will be of some regional benefit.

12:47

Steps to be announced to ensure that short-term unemployment does not become long-term benefit claims. Additional support for people out of work for 12 months or more. Additional £1.7bn assigned.

From January everyone under 25 out of work will be offered a job or placement. £260m new money for training and subsidies to training for young people. 54,000 extra places in sixth forms and colleges.

12:52

Action to reduce number of repossessions. Introduction of guarantee of securities backed by mortgages. Extend stamp duty holiday on properties under £175,000 until end of the fiscal year (March).

12:54

800,000 smaller companies benefit from delay in corporation tax. Loss relief brought in last November for one year - extended for an extra year to November 2010.

12:55

There will be a £2,000 discount from next month on cars bought where the owner scraps another car more than 10 years old.

13:00

£175bn net borrowing this year. £1bn extra revenue over three years through tax loopholes being closed.

13:03

From April 2011 restrict pension tax relief for incomes over £150,000.

13:04

Carol Chleboun: Pension contributions, tax relief was given at highest rate, up to 40% but for those with incomes over £150,000 Chancellor will reduce the relief down to 20%. Reduction is gradual and consultation on how this will be brought in. To come in April 2011.

Income tax rate - super tax rate introduced April 2010 for those earning over £150,000. Rate was previously indicated at 45% but Chancellor increasing to 50%. Also removing higher rate benefit of personal allowances for those with incomes over £100,000 from next April, a year earlier than planned.

13:07

Paul Dixon: £5bn efficiency savings in public sector, likely to have an impact on public sector jobs. Increases in alcohol and tobacco of 2% effective from 6pm on tobacco and midnight on alcohol.

£16bn property sales, proceeds being used for new capital investments. £3bn help people find jobs, £1bn green industries, near to £1bn for encouraging home sector

13:09

Improve regulation of lending, single set of accounting rules, to minimise risks banks are taking.

13:11

£500m extra financial support for housebuilding projects, thousands of new homes. £100m for local authorities to build energy efficient housing. Armed forces - £50m to modernisation their housing.

13:12

Moving forward incentives to bring North Sea oil production to fruition. Carol Chleboun: Good for this area, support industries in North-East.

13:15

Doubling rate of capital allowance from 20 to 40% from 2009/10. Green technologies - potential to create thousands of businesses. World's first ever carbon budget 34 per cent cut in carbon emissions target to 2020.

13:16

£435m extra support to develop energy efficiency measures for homes, businesses and buildings. £525m support in next two years for offshore wind.

13:18

Funding for 2-4 demonstration projects in carbon capture. £405m new funding low carbon energy support, strengthen supply chain.

13:20

Paul Dixon: Discovery of oil made UK world leader, green initiative funding aims to replicate that success in renewable energy.

13:23

Child element of child tax credit increase by £20. Child trust fund increases for disabled children by £100.

13:24

Statutory redundancy pay increases from £350 to £380 a week. Winter fuel allowance maintained ISAs. Carol Chleboun: limit for ISA currently £200 of which £3,600 is cash is being increased to £10,200 total of which £5,100 can be cash however this is introduced now for over 50s - younger investors have to wait a year.

13:26

Paul Dixon: Grandparents who have carer responsibility for grandchildren while parents at work may be credited for National Insurance contributions which count towards state pension - seems to extend treatment currently given to working parents but only applies to grandparents of working age.

13:35

Paul Dixon: No VAT increase as was suspected. Talking earlier about measures to counter avoidance, it's likely to be targeted at people attempting to turn income stream into capital to reduce marginal rate of tax.

Carol Chleboun: No change to capital gains tax at 18%.