Billed as a ‘responsible’ and ‘green’ Budget, the environment found its way to the top of the agenda in Chancellor Alistair Darling’s debut Budget speech.

Darling used his first Budget statement to introduce a series of measures aimed at reducing the UK’s carbon emissions, including a new zero rate of car tax to be levied in the first year for new, low polluting vehicles - just part of a wider reform of vehicle excise duty.

Despite attempts to improve his ‘green’ credentials, the Chancellor declared that a 2p increase on fuel duty will be postponed from April to October this year to help the country through the current credit crunch. However, Darling advised of further 0.5p fuel duty rise that is planned for 2010.

Extra funding for road-pricing proposals and additional financing to help homes become more environmentally friendly were also pledged by Gordon Brown’s successor.

Delivering his statement to the House of Commons, the Chancellor acknowledged mounting concerns over the global credit squeeze but insisted the UK was ‘better placed than other economies to withstand the global slowdown.’

If businesses were expecting further changes to the notorious proposed capital gains tax reforms, then they will be disappointed, with the Chancellor confirming that his controversial plans will be implemented as planned.

He also confirmed that a cut in corporation tax will take effect from next month.

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