A target exchequer surplus of revenue over spending next year of well over £1 billion - possibly as much as £1.3 billion. This is after allowing for money to be put into the new pension fund.

A package of tax cuts costing over £700 million in a full year, well ahead of last year's reductions totalling £580 million.

Cuts in the 24 per cent and 46 per cent income tax rates, a substantial increase in personal credits (allowances) and a widening of the standard rate income tax band by at least £1,500 for a single person (£3,000 for a married couple.)

Significant increases in social welfare payments, with particular emphasis on a rise in old-age pensions and carers allowance.

A rise of at least £10 a month in children's allowance payments and a package to encourage more building of creches by employers and by entrepreneurs.

Reforms in capital acquisitions tax to lower the burden on those inheriting property.

A commitment to look at new ways to encourage profit-sharing by companies with their employees.