Brown’s real ale budget cheer

Chancellor Gordon Brown today gave a World Cup boost to real ale drinkers, slashing 14p off the price of a pint.

Mr Brown said duty paid on beer produced by the nation’s smallest brewers would be halved.

The Chancellor said it was a cut ‘‘equal to 14p off each pint to be implemented for village pubs and small breweries by this summer - in time for the World Cup’’.

The light-hearted announcement, which brought cheers from a packed House of Commons, came as the Chancellor got down to the heavyweight business of unveiling a Budget for ‘‘enterprise, the family and public services’’.

He confirmed plans for a child tax credit for families on incomes of up to £58,000 as part of a drive for ‘‘prosperity for all’’.

He said there would be new incentives for business to encourage enterprise.

And he promised to secure a ‘‘long-term financial foundation’’ for the National Health Service.

‘‘Just as Britain built in the last Parliament a national consensus for stability and full employment Britain can in this Parliament build a consensus that we advance enterprise and fairness together,’’ he told MPs

Mr Brown gave an upbeat assessment of the UK’s economic prospects.

The British economy grew by 2.2% in 2001 and the Chancellor forecast growth by 2% to 2.5% this year, rising in 2003 to 3.5% and in 2004 from 2.5% to 3%.

Debt interest payments fell to £22bn (€35.7bn) in 2001-02 and should fall to £21bn (€34.1bn) this year, he said.

The budget this year will be in surplus by £3bn (€4.9bn) and in future years by £7bn (€11.3bn), £9bn (€14.6bn), Mr Brown predicted.

Net public borrowing was £1.3bn (€2.1bn) last year, will be £11bn (€17.8bn) this year and in future years will be £13bn (€21.2bn), £17bn (€27.6bn) and £18bn (€29.3bn).

He announced a series of tax breaks for companies including a research and development tax credit.

Corporation tax for small business would also be cut, creating what the Chancellor claimed would be the most favourable climate for small firms of any major economy.

As well as measures for small businesses, Mr Brown also announced plans to boost the environment.

The Chancellor announced the abolition of the climate change levy on electricity generated through so-called green methods.

For punters, he confirmed that tax-free betting would be extended to bingo.

For pensioners, Mr Brown announced that he was raising personal allowances faster than the rate of inflation, taking £170,000 out of tax.