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Key Budget measures include
Maintaining a stable economy
High quality public services

Productivity and enterprise in a flexible economy
Employment opportunity for all
Building a fairer society
Protecting the environment

Household income
Where taxpayers' money is spent
Further information
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The Government's aim is to build a fairer society in which everyone can contribute to and share in rising national prosperity. A flexible and dynamic economy must go hand in hand with a fairer society so that everyone has the chance to fulfil their potential. The Government is committed to tackling child and pensioner poverty, providing support for families with children, and ensuring security for all in old age. It is also creating a modern and fair tax system which raises sufficient revenue for public services and ensures that everyone pays their fair share of tax.

The Child Tax Credit was introduced in April 2003, supporting families with children and helping to tackle child poverty. By January 2004, around 10.7 million children were benefiting from the support it provides. The child element of the Child Tax Credit will increase by £3.50 a week from April 2004, benefiting 7.2 million children. The Pension Credit, introduced in October 2003, provides extra help for pensioners with low and modest incomes and rewards those who have saved for retirement. Budget 2004:

• announces reforms of financial support for 16 to 19 year olds to increase the proportion of people reaching the age of 19 with the skills necessary to fulfil their potential in the economy;


• announces additional funding for early years education and childcare of £669 million by 2007-08 compared to 2004-05;


• a £100 pension payment to households with someone aged over 70, to help with council tax bills;


• confirms plans to radically simplify the taxation of pensions;


• introduces a 19 per cent minimum rate of corporation tax on distributed profits of small companies;


• promotes fairness in the tax system, by introducing a package of measures to clamp down on tax fraud and avoidance;


• announces plans to create a single tax department by integrating HM Customs and Excise and the Inland Revenue; and


• raises the duties on tobacco, beer and wine in line with inflation, and freezes the duty on spirits and cider.

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