Tax: 'a cut from next April in the basic rate of income tax to 22p

We promised to get inflation and interest rates under control, to sort out the public finances, to make this the Government of economic competence and we have.

We promised to invest billions more in health and education and we have.

We promised we would cut youth unemployment and we have. And I can confirm to the House that, while rebuilding our public services, our prudence in office also enables us to hold to our pledge made at the election not to raise the basic rate of income tax.

In fact, to reward work and ensure working families are better off, I will match the new 10p starting rate of income tax this April with a cut from next April in the basic rate of income tax to 22p, the lowest basic rate of tax for 70 years - and under this Government.

Today's Budget is a better deal for work, a better deal for the family, a better deal for business - for a Britain now united around values of fairness and enterprise, and I commend this Budget not just to the House but to the country.