• The zero tax rate loophole was closed. Instead taxing on distributive profits was set at 19 per cent.

• Incentives for investment were increased for small firms. The investment allowance was raised from 40 per cent to 50 per cent.

• The film industry got a boost as tax relief on films with budgets of £15 million or less were given tax relief of 20 per cent which will go direct to the film makers themselves.

• The merging of Inland Revenue and Customs and Excise means business will deal with a single tax service.

• Fixed investment was forecast to grow by more than five per cent this year and more than six per cent next year.

• Business investment was forecast to increase by just under four per cent next year and six per cent in 2005.

• Brown predicted manufacturing output would increase by just under two per cent in 2004 and two per cent in 2005.

• Imports and exports will increase by more than five per cent this year.

• Corporation tax and capital gains tax rates remain frozen.

• The climate change levy remains frozen and the number of businesses who can benefit from 80 per cent discounts has been widenend.

• Venture capital trusts will secure tax relief for investments of up to £200,000 a year not at the higher rate of 40 pence.

• Firms with turnovers under £58,000 will not have to register for VAT. An additional 13,000 businesses will be eligible to benefit from simplified VAT accounting.