Find out how the changes will affect you.

1. Car ‘scrappage’ scheme

Mr Darling has announced the proposed car scrappage scheme will go ahead.

New car buyers can get £2,000 towards the cost of a new car in exchange for scrapping their old car.

To qualify for the scheme  drivers must scrap a car they have owned for at least 12 months and is at least ten years old.

A similar incentive has already boosted new car sales in Germany by 40 per cent.

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2. Petrol prices to rise

The cost of fuel will rise by 2p per litre in September 2009 and 1p per litre in April 2010.

It will then increase by 1p per litre every year each April, until 2013.

The Chancellor has promised to keep an eye on oil prices.

3. Car tax increase

The revised £5 increase for all tax bands will go ahead on May 1, as announced in the 2008 Pre-Budget report.

Mr Darling has made no new changes to car tax, instead focusing his attention on energy-efficiency savings in homes and businesses.

4. Electric cars on the way

Drivers could receive incentives of between £2,000 and £5,000 to buy an electric car from 2011.

Despite Transport Secretary Geoff Hoon stating the electric car would be a “real option for motorists,” there was no mention of the scheme in the 2009 Budget announcement.

5. What else was announced?

• ISA limit to be increased to £10,200 from £7,200 this year for people aged 50 and over, and next year for everyone else
• Tax on alcohol and cigarettes increased by 2 per cent
• Income tax for those who earn over £150,000 a year to rise to 50 per cent from April 2010
• Unemployed people under 25 years old to be offered paid training or a job
• Basic state pension to increase by 2.5 per cent
• Cash for energy efficient schemes – £525m to go to offshore wind projects and £100m for local authorities to build energy efficient homes

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