Chancellor Alistair Darling has begun his first budget speech to a packed House of Commons.
His opening statements spoke of Britain's "strong, stable" economy.
At the outset he said he will delay the 2p increase in fuel duty has until October.
However, he also noted the "significant disruption" being experienced in the world's global markets.
Despite this he said the Government had: "Maintained confidence and stability in the banking system."
He forecasts economic growth in the UK to grow quicker than the euro zone or Japan.
He promised that inflation will rise here but not at the rates seen in the 80s and 90s and will return to its target level next year - at 2%.
The Chancellor said that fiscal stability is his prime concern.