Main Points Of Budget

Income tax reform, with move towards tax credit system.

First £100 of weekly income exempt from tax.

Old-age pensions to be raised by £6 a week for individuals and £9 for married couples

Extra tax puts up price of larger cars

Betting tax abolished on racecourses, and halved in bookmakers' shops effective from July 1st

Cigarettes up by 5 pence for 20; no rise in drink prices.

Additional £8 million to deal with hospital waiting lists

Standard corporate profit tax cut from 32 to 28 per cent.

Child benefit up £3 a month for first two children.