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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 believes that economic prosperity must be achieved while protecting the environment to ensure a better quality of life for current and future generations. In particular the Government is committed to playing a leading role in tackling the global challenge of climate change. It is also committed to improving the local environment in the UK's towns, cities and rural areas and to promoting an efficient and environmentally sustainable transport system. Budget 2006 announces:

• measures to improve household efficiency, including subsidised insulation in over 250,000 homes and trialling the use of 'smart' gas and electricity meters;
  
  
• measures to encourage energy efficiency in the business sector including an increase in line with inflation of the climate change levy, deferred to April 2007;
  
  
• reforms to vehicle excise duty to introduce a new zero rate for the small number of cars with the very lowest carbon emissions and a new top band for the most polluting new cars;
  
  
• an increase in line with inflation of fuel duty rates from 1 September 2006; and
  
  
• a freeze in the aggregates levy and air passenger duty.

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