Highlights that impact on business:

* Growth in 2001 was 2.2 per cent; forecast for 2002 is between 2 and 2.5 per cent; 2003, 3 to 3.5 per cent. Inflation target continues at 2.5 per cent.

* Automatic fines from Customs and Excise abolished for late-paying small businesses.

* Measures to help British manufacturers invest in technology - large companies to get a new research and development tax credit.

* New small companies tax rate cut from 20p to 19p with immediate effect and 10p starting rate of corporation tax reduced to zero.

* Capital gains tax reduced to ten per cent for small businesses.

* Small businesses get new flat rate of VAT to cut down on administration. To be extended from next April to almost half VAT-registered firms.

* VAT on bad debts - small companies get an automatic right to relief after six months.

* Pilot training projects allowing staff from small firms time off to gain skills.

* Additional £30m for more small, businesses can get Investors in People status.

* Stamp duty abolished on all commercial and business property in deprived areas.

* Licence fees on cars, vans and lorries frozen.

* Tax on petrol and diesel frozen.