By Ellen Cresswell, 22/04/2009 00:00

Key points of Budget 2009

Economy

Chancellor Alistair Darling promised to speed economic recovery by protecting jobs and spreading prosperity in today's Budget.

Darling warned Britain faced the most serious global economic turmoil for more than 60 years. He confirmed the worst year for the economy since the Second World War with a 3.5% decline in 2009, far worse than his pre-
Budget forecasts.

But he said the government would protect investment in schools, hospitals and other key public services, while rebuilding the financial services sector.

He said: "Today's Budget will continue to help people through this global recession and prepare Britain for the opportunities of the future."

The global recession was being felt in every continent, country and community, he said.

"When the world economy was plunged into deep crisis in the 1930s, the response, both nationally and internationally, was too little and too late," he told the Commons.

"This failure to act turned a serious downturn into a prolonged depression. We will not repeat those mistakes again."

MSN Money's full coverage of Budget 2009

Public borrowing to soar to £175bn

Public borrowing will soar to a record £175 billion or 12.4% of the UK's annual economic output in the current year.
The plunge into red comes as the Treasury wrestles with a toxic combination of falling tax receipts, higher spending and the cost of bank bail-outs.

Including the £90 billion borrowing for 2008/09, total net borrowing is forecast to hit £696 billion by 2012/13, almost £240 billion more than the predicted in November's pre-Budget Report.

He expects the economy to grow by 1.25% in 2010 - also below November's forecasts - before the pace of the economy quickens in 2011 with a 3.5% expansion.

What did you make of the Budget?

Unemployment

The chancellor announced plans to create or support 250,000 jobs as part of a package of measures to stem the rise in unemployment and help jobseekers, particularly the young, find jobs.

As part of the expected "Budget for Jobs", Darling said the government was determined not to return to the days when a whole generation of young people found themselves "abandoned to a future on the scrapheap".

The Jobcentre Plus network will receive an additional £1.7 billion, on top of £1.3 billion previously announced so that "everyone" can receive high-quality support.

From January, everyone under the age of 25 who has been out of work for 12 months, will be offered a job or a place in training, and those in work will receive a wage.

Those in training will receive additional money on top of their benefits, MPs were told.

The car industry

The Chancellor attempted to kick-start the ailing motor industry by introducing a "cash for bangers" car-scrappage scheme.

Anyone with a car registered before December 31 1999 will receive a cash incentive of £2,000 to trade in their old vehicle for a brand new one.

A total of £1,000 will come from the government and the remaining £1,000 from car companies, with participants being able to buy any new vehicle, including small vans, rather than just low-pollution models.

About £300 million has been put aside by the government to fund the scheme, which is expected to come into effect as early as mid-May and will last until the grant runs out, thus enabling 300,000 consumers to benefit.