The chancellor has announced his budget in the House of Commons vowing to 'protect jobs and livelihoods of the British people'.

Chancellor Rishi Sunak revealed a series of initiatives intended to help the country emerge from the Covid crisis.

As widely expected, he extended furlough until September - but he also announced plans to increase the tax on large company profits from 2023, during his budget speech on Wednesday afternoon.

National insurance and VAT rates will not be increased but more people will be pushed into the top income tax bracket.

Mr Sunak said he would do 'whatever it takes' to support people and business.

The headline rate of corporation tax will go up from 19% to 25% in 2023, with an exemption for smaller businesses, and income tax thresholds will be frozen.

The chancellor pledged £30bn of extra spending to protect the economy against the effects of Covid, describing the budget as the biggest fiscal boost to the country in many decades.

The budget also includes welfare and business support, sick-pay changes and local assistance, as well as £7bn for businesses and families and £5bn for the NHS.

Mr Sunak explained that the government will invest in 'world-class infrastructure' costing £175bn up to 2026.

He insisted this lergescale financial boost targeted at roads, rail, hospitals and digital infrastructure would increase Britain's long-term productivity by 2.5% and add 0.5% a year to GDP growth.

He conceded that predicted growth – excluding issues relating to the coronavirus pandemic – has been cut this year to 1.1%, from a previous forecast of 1.4%, while growth forecasts for 2022 and 2023 were also cut.

"Our economy has shrunk by 10% - the largest fall in over 300 years," he said during his speech to the House, adding: "Our borrowing is the highest it has been outside of wartime.

"It's going to take this country - and the whole world - a long time to recover from this extraordinary economic situation. But we will recover."

He also announced the founding of a government agency which would help target Covid fraudsters, while the sport and hospitality sectors have been handed a significant boost

Rishi Sunak's 2021 in summary:

An extra £1.65 billion cash injection to ensure the Covid vaccination roll-out in England continues to be a success.

£28 million to increase the UK's capacity for vaccine testing, support for clinical trials and improve the UK's ability to rapidly acquire samples of new variants of Covid.

£22 million for a world-leading study to test the effectiveness of combinations of different Covid vaccines. This will also fund the world's first study assessing the effectiveness of a third dose of vaccine to improve the response against current and future variants of Covid.

A further £5 million on top of a previous £9 million investment in clinical-scale mRNA manufacturing, to create a 'library' of vaccines that will work against Covid variants for possible rapid response deployment.

Extending £500 Test and Trace support payments in England until the summer.

Protecting jobs and livelihoods

An extension of the Coronavirus Job Support Scheme to September 2021 across the UK.

An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people who filed a tax return in 2019-20 now able to claim for the first time.

An extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September will support the housing market and protect and create jobs.

A new mortgage guarantee scheme will enable all UK homebuyers secure a mortgage up to £600,000 with a 5% deposit.

£5 billion for new Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.

A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.

Extension of the Film & TV Production Restart scheme in the UK, with an additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund.

Six-month extension of the £20 per week Universal Credit uplift in Great Britain, with the Northern Ireland Executive receiving additional funding to match the increase.

A one-off payment of £500 to eligible Working Tax Credit claimants across the UK.

Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.

750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.

Extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000.

£7 million for a new "flexi-job" apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.

Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.

More than doubling the legal limit for single contactless payments, from £45 to £100

£10 million to support veterans with mental health needs across the UK.

£19 million to tackle domestic abuse in England and Wales, with funding for a network of 'Respite Rooms' to support homeless women and a programme to prevent reoffending.

£90 million funding to support our government-sponsored national museums in England due to the financial impact of Covid.

£300 million for major spectator sports, supporting clubs and governing bodies in England as fans begin to return to stadia.

Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.

To further support the cashflow of businesses, the government is extending the loss carry back rules worth up to £760,000 per company.

£100 million for a new Taxpayer Protection Taskforce to crack-down on Covid fraudsters who have exploited UK Government support schemes.