Thursday, 3 December 2009

Pre-Budget Report Preview

Next week the Chancellor will set out his final Pre-Budget report before the next general election.

In it he will hope to define the Labour government as the only party that can ensure economic recovery, and drive a wedge of economic policy between Labour and the Conservatives.

The economic plan will need to ensure Britain’s economy is nurtured back into growth coupled reducing the public deficit will have to be cautiously balanced with ‘gifts’ to the electorate.

In what will no doubt be dubbed a bold PBR, we know this from leaks thus far:

• VAT will return to the 17.5% level
• Income tax and national insurance look set to be increased
• New ‘green’ taxes are expected
• Measures to ensure continued growth of low carbon sectors is certain

It will be interesting to see how many of the Chancellor’s measures are tabled for introduction before the General election.

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