This will be backdated and will apply to all babies born from September 2002.

Babies from the poorest one-third of families will receive �500 each; all other babies will receive �250.

The government proposes to add to these trust funds at key stages during the child's schooling.

The new Working Tax Credit, which will replace the Working Families Tax Credit from April 2003 will provide additional targeted support for low-income households in Scotland.

The new Child Tax Credit will benefit 430,000 families in Scotland.

Currently pensioners in hospital lose 36% of income support after six weeks, this will not now apply until after one year.

Up to 400,000 Scottish pensioner households will be able to benefit from the new Pension Credit.

The Minimum Income Guarantee will be increased to �102.10 for single pensioners and �155.80 for couples, helping 186,000 pensioners in Scotland.

The rules governing benefits for people moving into employment will be devolved to local Job Centre managers.

A range of measures were announced to help people from ethnic minorities, people with disabilities and young offenders in the transition into employment.

Scotland's 140,000 lone parent households will also benefit from new measures.

Housing Benefit will not end once claimants enter into employment. Rather, support will be tapered.

BT will work with Job Centre Plus and the Glasgow Employer Coalition to create a model partnership to help lone parents.

There will be an examination of how research organisations, which are not taxed and can therefore not benefit from R&D tax credits, can be assisted.

The VAT flat rate scheme will be extended to businesses with a VAT exclusive turnover of up to �150,000. Over 43,000 Scottish businesses will be eligible to use the scheme.

Scotch whisky producers will benefit from a freeze in duty on spirits. The industry employs over 9,500 directly in Scotland and supports a total of 41,000 jobs in Scotland.

Furthermore, 2,300 jobs are supported in Scotland by gin and vodka production.

Scotland's estimated 3,000 small retail and catering businesses will be eligible to benefit from the extension of the Small Firms Loan Guarantee Scheme.

This will encourage the maximum use and prolong the life of existing Scottish and UK infrastructure, both offshore and onshore and it will potentially secure 620 Scottish jobs.

The government will discuss with the industry further measures to develop smaller reserves of oil and gas in the North Sea.

The tax is revenue-neutral and will move from an escalator implying a yearly increase of �1 per tonne of waste per annum to one implying an increase of �3 per tonne per annum in 2005/06.