The Budget avoids the potential trap of being too austere and fiscally virtuous too soon, when the recovery is still in a young, frost-tender stage.

New Zealanders earning over $50k will now be paying less tax than Australians after today's tax cuts.

"There is not much we would be critical of," says Business Roundtable executive director Roger Kerr. "The budget reveals sound steps but not step changes."

Owners of both commercial buildings and rental houses will no longer be able to claim depreciation on their investments.

NZ remains financially vulnerable, but there are positive signs emerging and the economy is on track to grow, Bill English says.

From October 1 all personal tax rates will be cut, ranging from 2 per cent for someone earning up to $14,000 to five per cent for high income earners.

Britain's beleagured Prime Minister Gordon Brown has made a big gaffe in the lead-up to the election.

Treasury Secretary John Whitehead says the rental property tax scheme creates the wrong incentives.

Vision Securities has gone into receivership, but Treasury says $28m of investors money is safe.

Up to six Government departments face investigation in the hunt for the sources of leaked Cabinet papers.

New Zealand's financial markets are "back to normal", says Finance Minister Bill English.