1. ITV Report

Budget 2016: The key words to look out for

George Osborne will deliver his Budget on Wednesday. Credit: PA

Budget: The Budget is a statement made every year by the Government on how it is going to get the money it needs to spend on the country.

Budget surplus: A situation where the Government does not spend more than it receives in tax revenues each year, the opposite of a deficit. George Osborne has vowed to clear the deficit by the 2020 general election, but to do this he will have to find another £4 billion in cuts.

CPI / RPI: The Consumer Prices Index and the Retail Prices Index measure the changes from month to month in the cost of a representative "basket" of goods and services bought by consumers within the UK.

Deficit: The gap between what the Government gets into their coffers, and what it spends. The deficit is a bit like money you spend on your credit card that you don't have. The debt is your credit card bill that rolls up, with interest, if you never pay it off.

Duty: A type of tax charged on certain items such as cigarettes and alcohol.

Fuel Duty: A tax imposed on the sale of fuel.

Fuel duty is a tax imposed on the sale of fuel. Credit: PA

GDP: Gross Domestic Product, a measure of a country's economic productivity.

Inflation: The general level of goods and services prices going up.

Insurance Premium Tax: This is a tax on insurers and covers general insurance premiums.There are two rates: a standard rate of 9.5% and a higher rate of 20% for travel insurance, mechanical and electrical appliances insurance and some vehicle insurance.

Interest rates: The rate at which interest is paid by a borrower for the use of money that they borrow from a lender.

Long-term economic plan: A phrase used by the Conservatives to describe five of their key objectives: reducing the deficit, cutting income taxes, creating more jobs, capping welfare and reducing immigration, and delivering the best schools.

Northern Powerhouse: The Government's term for efforts to boost economic growth in northern regions and create "the single market for people, goods and ideas that will empower the North to compete with the rest of the world".

George Osborne regularly uses the phrase 'Northern Powerhouse'. Credit: PA

OBR: Office for Budget Responsibility. It was formed in May 2010 to make an independent assessment of the public finances and the economy, the public sector balance sheet and the long-term sustainability of the public finances.

ONS: Office for National Statistics. It produces economic statistics that measure the UK economy in different ways.

Personal tax allowance: The amount you can earn before paying tax. It is currently £10,600 and the Government say it will hit £12,500 by 2020. There is expected to be a £300 rise in the Budget.

Personal Independence Payments: Financial assistance to the disabled and those with long-term ill-health, ranging from £21.80 to £139.75 a week. Recipients are assessed using a points system.

Red Briefcase: The suitcase traditionally contains the Chancellor's Budget speech. Before going to Parliament to deliver the statement, the Chancellor holds up the red box outside No. 11 to waiting photographers.

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