The basic rate of VAT will be cut from 17.5% to 15% from December 1st. The cut will remain in place for 13 months, through to January 2010. This will cost the exchequer £12.5bn, some of which will be recouped from a rise in the duty on alcohol, tobacco and petrol.

This measure will do more to stimulate the economy than anything else because it rewards people who spend. The more they spend, the more they save. The fact the cut is being implemented as soon as possible means people wont wait before going shopping. At the fact it’s only a temporary cut means it will give us the short-term boost we need whilst allowing us to balance our books later.

The new top rate of tax will affect only people earning more than £150k a year, ie one per cent of people in the UK, and should raise around £1.2bn extra a year. People earning this amount will have a hard time complaining about paying a little extra tax during these very hard times. We’ve all got to do our bit to get the economy going, this is what they can do. And when the economy starts booming again they’ll be the first to benefit.

This tax change will benefit 22 million basic rate taxpayers, many of whom will be at the poorer end of the economic scale. This tax rate was supposed to be temporary only (a bribe to the electorate many thought), the government has now made it permanent. This is exactly the sort of change the economy needs and counters those who claim Labour only raise taxes.

The employer and employee rate of national insurance will increase by half of one percent. This necessary change will help offset the tax breaks in other measures and ensure our national debt doesn’t rise beyond manageable levels.

Mortgage lenders will have to wait at least three months after a borrower falls behind with their payments before seeking repossession. The government will provide guarantees for mortgage-backed securities, subject to EU approval. Anyone with a mortgage of £200,000 or less will be able to apply for help with their payments if they lose their jobs and more than £1bn will be made available to increase funding for social housing

These measures help homeowners who get into trouble and it gives them some crucial breathing space before their home gets repossessed. No one benefits when repossessions take hold, the general home market goes down, all house prices are depressed and people are homeless. The government has been criticised for not doing enough to put pressure on mortgage lenders and help homeowners. This proposal answers that criticism.

Starting in 2010 the government will contribute 50p for every £1 saved. This measure will encourage 8 million people on low incomes to save more for their future, will give them an essential sense of autonomy and will, ultimately , be good for the country as a whole.

There will be a one-off payment in January of £60 for single pensioners and £120 for couples. Pension credit will rise in April from £124 to £130 per week for individuals and £189 to £198 for couples. The state pension will rise in line with the highest rate of inflation this year, equating to £4.55 a week for a single person. And increases to pensions and child benefits will start three months early in January.

This range of measures will help one of the most vulnerable groups in society. The lump sum will be a welcome boost at the toughest time of the year. The increase in state pension in line with inflation will ensure pensioners have a comparable cost of living this year to last. And the pension credit will give them another little bit extra in the kitty.

Credit worth £1bn to small firms will be offered by the government via a temporary Small Business Finance Scheme. The planned increase in the small companies rate of corporation tax has been deferred, so the 2009 tax rate will be unchanged. UK banks will get £1bn of funds so they can lend to firms more easily. The export credit guarantee scheme will have another £1bn made available to support businesses. HM Revenue and Customs (HMRC) will allow firms facing difficulties to spread the payment of all their business taxes over a timetable they can afford, for as long as they need. This includes the self-employed.

Small businesses are the lifeblood of our economy and these measures will allow more of them to ride out the difficult times and stay in business. The government understands the plight of small business owners and has gone a long way to ensuring they continue to provide the jobs and tax revenue the country depends on so much.

Energy companies have been accused of collusion in order to keep their prices artificially high. To counter this the energy regulator Ofgem will monitor changes in energy price and publish quarterly reports on the link between wholesale and retail prices. The UK benefits from comparatively cheap energy prices thanks to a competitive marketplace. This change will ensure the marketplace becomes even more competitive and even better for the consumer.

The closing of this loophole will mean more money in the exchequer and will ensure a fairer tax regime for all. People resident in the UK have a duty to pay tax on the money they earn here. They benefit from the provisions the government makes, they should contribute to their upkeep too.

The change in vehicle excise duty bands will still happen, but more gradually. The maximum increase next year will be £5 and from 2010 the maximum increase will be £30 – it was going to be £90.

The increase in the children's tax credit will be brought forward, as will the child benefit increase. Both will start in January, not April.

£150m extra will be made available to fund energy-saving measures, this will both save money for individuals and help save the environment. If energy companies fail to pass on savings when oil prices fall the government will consider legislation to force them to do so. Air passenger duty to be reformed so that longer journeys are charged more

A new national employment partnership will be formed to help the unemployed find work and the Prime Minister will be its chairperson. Such high level support will ensure the best minds come together to help solve the problems of long-term unemployment and to help any newly employed people get back to work quickly. In total, the package of measures for the unemployed is worth £1.3bn.

It’s much better to pay people to work than to be unemployed and so £3bn worth of spending on important infrastructure projects will be brought forward from 2010-11. The double advantage being the country gets to benefit from better schools, hospitals and roads that much sooner.

Some of the money spent on this package and on the other bailout measures will be recouped by government efficiency savings totalling £35bn. The government has eliminated huge amounts of waste and this will continue for the next few years. The benefits of which will be seen for decades to come.