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Key Budget measures include
Maintaining a stable economy
Productivity and enterprise in a flexible economy

High quality public services
Employment opportunity for all
Building a fairer society
Protecting the environment

Household income
Where taxpayers' money is spent
Further information
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The Government's aim is to build a fairer society in which everyone can contribute to and share in rising national prosperity. A flexible and dynamic economy must go hand-in-hand with a fair society so that everyone has the chance to fulfil their potential. The Government is committed to tackling child and pensioner poverty, providing support for families with children and ensuring security for all in old age. It is also creating a modern and fair tax system which raises sufficient revenue for public services and ensures that everyone pays their fair share of tax.

The Child Tax Credit was introduced in April 2003, to support families with children, help to tackle child poverty, and ensure continuity of income for people moving into work. By December 2005, around 10 million children were benefiting from the support it provides. The Pension Credit, introduced in October 2003, provides extra help for low and modest income pensioners and rewards those who have saved for retirement.

Budget 2006 announces further steps to promote a fairer society:

• a commitment to increase the child element of the Child Tax Credit at least in line with average earnings to the end of the Parliament;
  
  
• further payments into Child Trust Fund accounts at age 7 of £250 for all children, with £500 for children from lower-income families;
  
  
• an increase in the starting threshold for stamp duty on property to £125,000 to help first-time buyers;
  
  
• an increase in the inheritance tax threshold to £312,000 in 2008-09 and £325,000 in 2009-10;
  
  
• free national bus travel in England for every pensioner and disabled person from April 2008;
  
  
• taking forward the ten year strategy for Childcare, providing further help for working parents with their childcare costs and moving towards a nationwide network of 3,500 Children's Centres;
  
  
• further reforms to modernise the tax system, and a number of measures to clamp down on tax fraud and avoidance; and
  
  
• an increase in duties on tobacco, beer and wine in line with inflation, and freezes on the duty on spirits, sparkling wine and cider.

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