The government is to activate its Savings Gateway, targeted at the low and moderate earners who are often least able to save. Savers will attract government matching for their savings in the scheme for as long as they participate in it, which according to the Tax Incentivised Savings Association "has the potential to introduce up to eight million people into mainstream savings in the UK".

Tisa director-general Tony Vine-Lott said: "We are extremely pleased that the government has pushed forward with the Savings Gateway after exhaustive trials demonstrated the merit of this scheme."

But elsewhere in his statement, the Chancellor brought few surprises out of his briefcase on personal taxation or savings and investment.

There was a 25% uplift to £500,000 on the amount that can be sheltered for investors under the Enterprise Investment Scheme, and a £20,000 rise to £120,000 in relief under the Enterprise Management Scheme which helps key employees to receive share options.

There is help for those with tiny pension pots worth up to £2000 stranded in a company scheme, who will be able to retrieve a lump sum rather than be forced to buy an annuity.

The Association of British Insurers welcomed the move but said it was "disappointing that this could not be applied across all small pension pots to reduce confusion for all low income pension savers".

There was no discussion of the rule which forces pension investors to buy annuity by the age of 75, or of last year's hot potato inheritance tax.

The Chancellor defended his changes to capital gains tax but did not mention effects on private investors. John Cumming, a director at wealth managers Bell Lawrie White in Glasgow, said: "The only thing that private investors have to look forward to is the flat 18% tax on capital gains from April 6."

Long-term shareholders will see their tax rate cut from 24%, though the loss of indexation benefits will hurt many, but the biggest winners are short-term shareholders currently paying the full higher rate tax of 40% on gains.

There was no joy for holders of insurance bonds, which are disadvantaged by the capital gains tax changes, and no refinements to the changes announced for Individual Savings Accounts. The maxi and mini Isa regime is scrapped, with an overall limit of £7200, but a £3600 limit for cash Isas, and transfers only from cash to shares.

The Building Societies Association had called for two-way transfers to be allowed, so that people approaching retirement could move from shares into cash.

The scrapping of the 10% starting rate of tax, for earned income and pensions, comes in as expected on April 6 alongside the cut in the basic rate from 22% to 20% and a lifting from £34,840 to £40,040 of the ceiling for paying the standard 11% rate of National Insurance.

Standard Life said: "Those earning £15,000 a year or less are likely to be worse off. By having more of their income taxed at 20%, rather than 10%, they will pay more in tax. For example, someone earning £8000 will be around £12 per month worse off.

"The biggest winners will be those earning about £35,000 a year, who will be around £32 per month better off. They will save income tax yet pay no more NI.

"However, the rise in the ceiling for the standard 11% NI contribution rate means that those earning about £40,000 a year will gain very little, as they will now pay the higher rate of NI on more of their income."

The changes also have an impact on pension contributions. After April, the government will contribute only £200 for every £1000 contributed, instead of the £220 at present.

Even a small reduction in the rate of income tax makes a difference to me'

Name: Andrew Theobold, 29.

Occupation: Primary Teacher (Supply), John Paul II Primary, Castlemilk.

Family status: Engaged to be married next year to Clara Suess, 27, a marketing manager.

Housing: Owns an apartment in Glasgow's Merchant City.

Income: Middle-income What he would like to see: "Giving the Scottish Government the budget to reduce class sizes would make the biggest tangible difference to me. I work in a brand new school with great facilities and you can see the difference it makes to the kids.

"If only all schools had these resources. I think most teachers would be happy to make a personal sacrifice in terms of tax to see that happening.

"Also, as a young supply teacher, the rate of income tax is pretty important. Even a small reduction would make a lot of difference on the amount of cash I have to spend.

Highlights of Budget 2008: "The fall in income tax is the big thing for us. It may only seem a little but it will help us save for our wedding next year and maybe we will have enough left over for a holiday at half-term.

"I'm glad that fuel charges won't go up immediately. I am driving to my new school until I get to know the buses, so fuel comes to a big amount of my bills, especially when you consider that prices are going up anyway in real terms.

"The pledge to eradicate child poverty is fantastic if it can be delivered. I teach children from deprived areas and I really believe this could have a huge effect, if the government follows through.

"The promise to make new public buildings energy neutral is a good thing, even if it will be costly at first. I'm all in favour of schools having solar panels on our roofs.

"But can we be sure we will see this in Scotland? That wasn't very clear."

Lowlights of Budget 2008: "I suppose the hike in tax on wine and beer was inevitable - the prices haven't gone up for a long time. But if I take that together with the eventual rise in fuel costs, I suppose there is a possibility any saving I make in income tax could end up wiped out by stealth taxes.

"I would like to see a clearer indication that the money raised by taxing gas guzzlers and on fuel will be going back to the environment."