Budgets are always as much about politics as they are about economics. None more so than Gordon Brown's 11th, and he hopes, last Budget, delivered to the Commons today. For the Chancellor, today was his final opportunity, before a leadership election, to set out his stall as the next prime minister. It is also his last chance to stamp his authority on tax and spending.

Gordon intends today's Budget to consolidate his long record of economic stability and his own reputation for competence. And his record is lengthy at 10 years, making him longest serving Chancellor since Nicholas Vansittart who resigned amid unpopularity in 1823 after a tenure of 11 years.

Unlike Vansittart, Brown hopes this Budget will make him popular particularly with three important and disparate constituencies: the public who appear less than excited at the idea of a Brown premiership, those concerned about the environment an issue which has rapidly shot up the political agenda and ordinary Labour party members who will ultimately decide if he is to occupy Number 10.

This Budget was both technical and headline grabbing with the 2p cut in basic rate tax being the most obvious. Since Brown is also abolishing the 10p band, for most people this will be a tax neutral move. There was a small cheer for tax efficient investment with self-select ISA limits rising to £7200, but not until 2008 - this after nine years in a row at £7000 (although cash ISA limits were increased by £600). If nothing else, this means the amount is easily divisible by 12.

But the Chancellor had to show his green credentials. In addition to incentives for environmentally sound biofuels, there was a cut in road tax, from £50 to £35, for the least polluting cars and a rise in tax the least fuel efficient vehicles.

The FTSE 100 rose during the Chancellor's speech, although drifted a little in the afternoon, ending up 30 points before close. The FTSE 250, which more closely reflects the UK domestic economy increased more sharply approaching 140 point rise towards close.

The effect the 2007 Budget will have on investments and markets is important, which is why we have put together some research which we will update over the course of Thursday.