The chancellor has given details of his plans to help businesses survive the recession.

His main points to help businesses and employees are:

  • Create more jobs for people of all ages
  • £260m extra in training and subsidies for skills training for young people
  • £250m this year and £400m next year for additional higher education places
  • The total support provided by the Government will protect 500,000 jobs.
  • Loss-making companies will be able to reclaim more taxes on profits made in the last three years.
  • More help for firms with cash-flow problems
  • Insurance top up cover for companies announced
  • Will introduce a £2k scrappage scheme for old cars next month until March 2010 for cars over 10 years old
  • Offering real support to businesses
  • Extra support for people who lose their jobs - an extra £1.7 billion for job centres
  • UK economy is expected to shrink by 3.5% in 2009, but will begin to grow by the end of the year.
  • UK will suffer less than Europe and Japan
  • VAT cut from 17.5% to 15% will continue until December
  • Measures Labour has taken will protect 500,000 jobs.