Corporation tax increase on small businesses postponed

The UK Chancellor announced a £20bn stimulus - the equivalent of 1% of GDP between now and April 2010. He added that the country's growth will fall to 0.75% from 1.75-2.25% and predicted a gloomy first half of 2009, with output falling in the first two quarters.

Along with a raft of measures VAT was cut from 17.5% to 15%, which will be in effect on Monday until 2010, when it is expected to return to current levels.

"We would like retailers to pass it on as soon as possible" the Chancellor said.