These are the main points of today’s Pre-Budget Report:

TAX
- One-off 50% levy on any banking bonus above £25,000 before April 5 2010, raising £550 million to get unemployed into work.
- Planned 0.5% increase in National Insurance contributions doubled to 1%, meaning from 2011/12 employees will pay 12% and employers 13.8%. Starting point for NI to be raised so those earning £20,000 will pay no more than at present.
- Plan to increase inheritance tax threshold to £350,000 scrapped for next year. Threshold will be frozen at £325,000 in 2010.
- Thousands more workers to be brought into 40% income tax band by a one-year freeze on the threshold of around £43,000.
- Temporary 2.5% cut in VAT to end on January 1, with the sales tax returning to 17.5%.
- Planned 1% increase in small companies’ Corporation Tax deferred for one year, leaving the tax at 21% until 2011/12, when it will increase to 22%.
- Bingo duty cut from 22% to 20% in the spring.
- 50p-a-month duty on landlines to pay for 90% superfast broadband coverage by 2017.

FORECASTS
- Deficit forecast upgraded from £175 billion to £178 billion for this year and £176 billion next year.
- State deficit to be halved over following four years to £82 billion in 2014/15.
- Net debt forecast to reach 56% of GDP this year, 65% next year, 78% by 2014/15.
- UK economy to contract by larger-than-expected 4.75% this year and return to growth by the end of this year. Coming years’ growth prediction unchanged at 1%-1.5% for 2010 and 3.5% for 2011 and 2012.
- Inflation to rise to 3% next year.

SPENDING
- No Spending Review to be held.
- Basic state pension to rise by 2.5% in April. Other inflation-linked benefits to rise by 1.5%.
- State spending growth to be held to an average 0.8% annually from 2011 to 2015, meaning cuts to some budgets and the scrapping of some programmes.
- Public sector pay bill to be cut by £100 million over three years. All new appointments worth £150,000 and bonuses over £50,000 to require Treasury approval.
- Public sector pay rises - outside the armed forces - to be capped at 1% for two years from 2011.
- Spending on frontline NHS and schools to be protected for two years from 2011.
- Savings of £5 billion on IT projects, legal aid and prisons.
- Cap on state contributions to public sector pensions, saving £1 billion a year from 2012.
- Extra £2.5 billion for Afghanistan military mission next year.

SUPPORT
- Extension of scheme allowing firms to spread tax payments and tax exemption for empty properties.
- Further year’s extension of Enterprise Finance Guarantee scheme, guaranteeing a further £500 million of small business loans.
- Six-month extension of mortgage interest support for unemployed.
- Guaranteed education or training for 16- and 17-year-olds leaving school in September 2010.
- Financial support for 10,000 internships in industry and professions for undergraduates from poor backgrounds.
- Cut from 12 to six months in period of unemployment before under-24s are entitled to guaranteed work or training.
- Free school meals extended to 500,000 primary children.

ENVIRONMENT
- Government to finance four carbon capture and storage projects.
- Extra £200 million for household energy efficiency.
- Scrappage scheme to replace 125,000 home boilers.
- Tax-free payments for power sent to National Grid from home turbines and solar panels.
- Electric cars to be exempt from company car tax for five years.