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Schools plan in pre-Budget report Brown set to focus on education
(about 3 hours later)
Gordon Brown is expected to announce billions of pounds of investment in schools as he unveils his 10th and possibly final pre-Budget report. Chancellor Gordon Brown is expected to put investment in schools at the heart of what will be his 10th and possibly final pre-Budget report.
A 15-year programme would see England's 21,000 primary and secondary schools given funding to expand and refurbish. He told the BBC he wants to focus on improving schools and colleges so the UK could meet future challenges from countries such as China and India.
The chancellor, the favourite to become the next PM, is also widely tipped to raise green taxes in a bid to reclaim the environment as Labour's territory. Higher fuel duty for motorists and air passengers are also expected as part of a package of "green" measures.
The Tories have called for green taxes, including a carbon tax on businesses.The Tories have called for green taxes, including a carbon tax on businesses.
The chancellor is expected to give an upbeat assessment of the economy, but the pre-Budget report is being seen as more of a political manifesto for the leader-in-waiting. The chancellor, the favourite to become the next PM, is expected to give an upbeat assessment of the economy, but the pre-Budget report is being seen as more of a political manifesto for the leader-in-waiting.
In contrast to the last pre-Budget report when Mr Brown was forced into an embarrassing climb down over his 2005 growth forecast, this year the economy looks on track to at least match - if not exceed - the Treasury's 2-2.5% prediction of economic growth 'Planet'
During a round of media interviews on Wednesday morning he said that education was vital to ensure that British workers were well placed for the future.
He told the BBC he wanted "people to focus on how we can improve our schools and colleges" and make them the "best in the world".
There also needed to be better training for people who are already in work.
Mr Brown is expected to say the economy looks on track to at least match - if not exceed - the Treasury's 2-2.5% prediction of economic growth for this year.
The pre-Budget report will be Mr Brown's 10thThe pre-Budget report will be Mr Brown's 10th
The chancellor may also revise up the economy's trend growth rate from 2.5% to 2.75%. The chancellor may also revise up the economy's trend growth rate from 2.5% to 2.75% - a move which could reduce pressure for future interest rate rises.
Tax increases could include those for air travel and car use, coming after the Stern review in October on climate change warned that action was necessary to combat global warming. Mr Brown, who is seen as wanting to reclaim the environment as an issue from Tory rival David Cameron, told the BBC there were a range of measures which could be taken to help improve air quality and to ensure a "healthier planet".
There could also be increases in the top rate of Vehicle Excise Duty and Air Passenger Duty. Speculation has focused on the possible taxes on "gas guzzling" 4x4 cars and for air travel, after the Stern review in October on climate change warned that action was necessary to combat global warming.
Also, this month the influential cross-party Environmental Audit Committee accused the Treasury of not heeding calls for greater action on climate change. But Mr Brown said he would not give precise details until he delivered the report to MPs in the House of Commons, which is expected to be at about 1240 GMT.
The committee wrote to the Treasury calling for more action to help curb greenhouse gas emissions, such as financial incentives for those reducing emissions and penalties for those who do not.