British Chancellor of the Exchequer Gordon Brown has said details of a new Northern Ireland innovation fund for industry and jobs, to be made available to a restored executive, will be announced tomorrow.
Giving his 11th, and probably his last, budget, Mr Brown said his report to the country was of 'rising employment and rising investment; continuing low inflation, and low interest and mortgage rates'.
The basic rate of income tax is to be reduced to 20p in the pound.
Tax-free allowance for pensioners under 75 are to rise in three stages to £9,770 by 2011, and for over-75s to £10.
The Education Secretary is to change the education leaving age, making education a right for every young person until the age of 18.
And other measures announced in the budget would, he said, lift 200,000 children out of poverty.
Mr Brown announced an increase in duty on 20 cigarettes, from 6pm tonight, by 11p.
Beer duty is to rise by 1p a pint, cider by 1p a litre, wine by 5p a bottle and sparkling wine by 7p, but duty on spirits is being frozen.
For the coming year, fuel duty will rise by 2p per litre, another 2p in 2008 and 1.8p in 2009.
In his opening remarks, looking at the UK economy, he said inflation would fall further this year to 2% and would be on target in 2008 and 2009.
In 2008 growth would be between 2.5% and 3%, he said, with the same rate of growth in 2009.
Mr Brown announced that so-called frontline public services would receive 75% of all new spending in the upcoming spending round.
Earlier, commentators said Mr Brown would use his annual set-piece statement to set the stage for his anticipated move to 10 Downing Street, when Tony Blair steps down as British Prime Minister later this year.
Mr Brown was expected to focus heavily on environmental measures and education - his own declared priorities for government.
