Chancellor John Healey kicked off his Budget statement by saying it is for “the working people of Britain, for British businesses, big and small”, built on “fiscal discipline”.
He told MPs in the Commons: “First, by giving Britain some breathing space on the cost of living and the cost of business,
“Second, backing the enterprise of British business to unleash innovation and growth in every postcode
“And third, by tackling the big challenges on energy, on national security, on public service transformation and on housing.”
He went on: “Fiscal discipline is my first commitment as Chancellor. More than ever, it underwrites every promise this Government makes to the British people.
“In the Budget today, I meet the fiscal rules – the stability rule, the day-to-day spending must be covered by tax receipts. And the investment rule, that Government debt, defined as public sector net financial liabilities, must be falling as a percentage of GDP.
“This year, for the first time, I must meet these rules in the third year of the forecast, and I do.”