Most people in the UK will see some change in their personal finances following the Pre-Budget report.

Firstly personal allowances and National Insurance Contributions will go up in line with inflation. Fuel duty has risen for the first time in 3 years and motorists will have to pay an extra 1.25p per litre.

Air travellers will face increased costs. Air passenger duty is to double for both short and long flights. Travelling in economy class you will pay £10 on short flights and £40 on longer trips. Business and first class passengers will see similar increases.

In the UK about 16 million people have an Individual Savings Account (ISA). This allows people to save £7,000 per year tax free. This limit was set in 1999 and has not changed. However, the Chancellor has said that ISAs will continue until at least 2010.

As a result of increasing property prices many more people are liable for inheritance tax. The current system stays, although the threshold will increase to £300,000 in April. There had been suggestions that the inheritance tax system could be changed to a system of tiered rates.

On a 'green' note the Chancellor would like all new homes to be carbon zero by 2016. This means they will be built using renewable materials and use energy produced by environmentally friendly methods. Stamp duty will be cut on carbon zero homes.

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