This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7740897.stm

The article has changed 33 times. There is an RSS feed of changes available.

Version 17 Version 18
Live text: Pre-Budget report Live text: Pre-Budget report
(10 minutes later)
By Justin Parkinson 1308 Here's how Radio 4's news at 1pm put it: Gordon Brown has been defending his plans to borrow billions of pounds to revive the economy with tax cuts and extra spending. In a speech to the CBI, he said that extraordinary times required extraordinary action. The Chancellor, Alistair Darling, is expected to announce an immediate cut in VAT in the Pre-Budget Report later this afternoon - funded partly by a deferred tax rise for the highest earners. The Conservatives have accused the government of losing control of the public finances. By Justin Parkinson 1312 BBC political editor Nick Robinson tells BBC One's lunchtime news that it will not just be the very rich in the firing line - anyone in work is likely to be facing higher taxes at some point in the future, he says.
1308 Here's how Radio 4's news at 1pm put it: Gordon Brown has been defending his plans to borrow billions of pounds to revive the economy with tax cuts and extra spending. In a speech to the CBI, he said that extraordinary times required extraordinary action. The Chancellor, Alistair Darling, is expected to announce an immediate cut in VAT in the Pre-Budget Report later this afternoon - funded partly by a deferred tax rise for the highest earners. The Conservatives have accused the government of losing control of the public finances.
1301 Phil Hendren, Dizzythinks blog: If Gordon Brown does decide to sting us with massive rises in the national insurance contributions we make to claw back his profligacy in spending, then he really would be walking into the Tory charge of a bombshell... Perhaps we should rename him the DFS Prime Minister because it all sounds like a sofa sale... Read more on Dizzythinks1301 Phil Hendren, Dizzythinks blog: If Gordon Brown does decide to sting us with massive rises in the national insurance contributions we make to claw back his profligacy in spending, then he really would be walking into the Tory charge of a bombshell... Perhaps we should rename him the DFS Prime Minister because it all sounds like a sofa sale... Read more on Dizzythinks
1245 Following on from Mr Darling's reported comment that his statement will be presented in language "your mother could understand", I asked whether that would be necessary if one's mother was a Nobel Prize-winning economist. Jimmy from Warrington, Cheshire, emails to say that all Nobel laureates in economics have been men. Oops.1245 Following on from Mr Darling's reported comment that his statement will be presented in language "your mother could understand", I asked whether that would be necessary if one's mother was a Nobel Prize-winning economist. Jimmy from Warrington, Cheshire, emails to say that all Nobel laureates in economics have been men. Oops.
1243 From the CBI conference "I had a breakfast this morning and nobody mentioned it. Anyone who has a job where he earns £150,000 a year will find it difficult to grumble about a 5% tax rise during an economic downturn. I can't imagine that this would be an election issue per se. The money raised from such a measure would be small beer in the greater scheme of things - it's more of a signal that we are moving in another direction from other competitive economies." Sir Mark Moody-Stuart, Anglo American chairman.1243 From the CBI conference "I had a breakfast this morning and nobody mentioned it. Anyone who has a job where he earns £150,000 a year will find it difficult to grumble about a 5% tax rise during an economic downturn. I can't imagine that this would be an election issue per se. The money raised from such a measure would be small beer in the greater scheme of things - it's more of a signal that we are moving in another direction from other competitive economies." Sir Mark Moody-Stuart, Anglo American chairman.
1237 A recap for those just joining us. Chancellor Alistair Darling is due to deliver the pre-Budget report at 1530 GMT. Among the measures expected to be included is a temporary cut in the VAT rate from 17.5% to 15%. Mr Darling is also planning to introduce a 45% income tax rate for earnings above £150,000 a year - to be brought in if Labour wins the next general election. There are reports he will increase the "period of grace" before lenders repossess homes to three months and scrap plans to increase vehicle excise duty for another year. The Tories are warning of a "tax bombshell" if the government borrows too much.1237 A recap for those just joining us. Chancellor Alistair Darling is due to deliver the pre-Budget report at 1530 GMT. Among the measures expected to be included is a temporary cut in the VAT rate from 17.5% to 15%. Mr Darling is also planning to introduce a 45% income tax rate for earnings above £150,000 a year - to be brought in if Labour wins the next general election. There are reports he will increase the "period of grace" before lenders repossess homes to three months and scrap plans to increase vehicle excise duty for another year. The Tories are warning of a "tax bombshell" if the government borrows too much.
1235 From the CBI conference It'd be a dreadful mistake not because entrepreneurs would end up paying more tax - most of them would never reach the £150,000 annual earnings threshold that is widely banded about - but rather more because of the psychological impact such a tax hike would have. They want to feel that if they get there, it won't be taken away from them. Simon Atkins, managing director of Biz Wiz Books1235 From the CBI conference It'd be a dreadful mistake not because entrepreneurs would end up paying more tax - most of them would never reach the £150,000 annual earnings threshold that is widely banded about - but rather more because of the psychological impact such a tax hike would have. They want to feel that if they get there, it won't be taken away from them. Simon Atkins, managing director of Biz Wiz Books
1226 Toranika: on Twitter I am wondering what today's pre-Budget report will bring and how much taxes will have to rise later . Read more on Twitter1226 Toranika: on Twitter I am wondering what today's pre-Budget report will bring and how much taxes will have to rise later . Read more on Twitter
1225 A little bit more about the workings of the PBR. There will be no motions or votes and there is no set length for the debate, though it typically lasts up to about an hour and a half.1225 A little bit more about the workings of the PBR. There will be no motions or votes and there is no set length for the debate, though it typically lasts up to about an hour and a half.
1223 Have Your Say "There should be massive investments in renewable energy for homes and industry. This would solve the jobs crisis and the climate crisis at the same time."DG, Devon, UK1223 Have Your Say "There should be massive investments in renewable energy for homes and industry. This would solve the jobs crisis and the climate crisis at the same time."DG, Devon, UK
1222 Susan, W Yorkshire, GrimmerUpNorth blog: For over 11 years Labour Governments have refused to increase direct taxes - that's all changed with the current economic crisis... the fact that the Government is prepared to open up a clear divide between them and the Tories and use taxation as an election battleground is to be welcomed. Read more on GrimmerUpNorth.1222 Susan, W Yorkshire, GrimmerUpNorth blog: For over 11 years Labour Governments have refused to increase direct taxes - that's all changed with the current economic crisis... the fact that the Government is prepared to open up a clear divide between them and the Tories and use taxation as an election battleground is to be welcomed. Read more on GrimmerUpNorth.
1220 Lib Dem Treasury spokesman Vince Cable says any tax cuts should be concentrated on income tax for those on low pay.1220 Lib Dem Treasury spokesman Vince Cable says any tax cuts should be concentrated on income tax for those on low pay.
1219 Former Conservative cabinet minister John Redwood says his party will not support an unfunded cut in VAT.1219 Former Conservative cabinet minister John Redwood says his party will not support an unfunded cut in VAT.
1218 Labour MP and former transport secretary Ruth Kelly tells BBC Two's Daily Politics the chancellor's statement will bring a "significant stimulus" to the economy.1218 Labour MP and former transport secretary Ruth Kelly tells BBC Two's Daily Politics the chancellor's statement will bring a "significant stimulus" to the economy.
1216 BBC political editor Nick Robinson tells Daily Politics the chancellor is promising a statement in simple language that "your mother could understand", rather than a load of complex jargon. What if your mother is a Nobel Prize-winning economist?1216 BBC political editor Nick Robinson tells Daily Politics the chancellor is promising a statement in simple language that "your mother could understand", rather than a load of complex jargon. What if your mother is a Nobel Prize-winning economist?
1206 The dire warnings go on and on. Consultancy firm Capgemini says UK electricity generation has fallen to its lowest level in 10 years and that a shift to more environmentally friendly generation could mean power shortages in the "near future". But the National Grid says lowered demand caused by the credit crunch should make the situation "more comfortable".1206 The dire warnings go on and on. Consultancy firm Capgemini says UK electricity generation has fallen to its lowest level in 10 years and that a shift to more environmentally friendly generation could mean power shortages in the "near future". But the National Grid says lowered demand caused by the credit crunch should make the situation "more comfortable".
1157 Have Your Say "Cut duty on fuel and everything will get cheaper. What's the point of putting more money in people's pockets if all they spend it on is fuel?"Adrian Harvey, Middlesborough, UK1157 Have Your Say "Cut duty on fuel and everything will get cheaper. What's the point of putting more money in people's pockets if all they spend it on is fuel?"Adrian Harvey, Middlesborough, UK
1152 The Environment Agency has called for a "green New Deal", increasing the energy efficiency of homes and making greater use of sustainable power sources. In his CBI speech earlier, Mr Brown hinted at more announcements along these lines in the PBR.1152 The Environment Agency has called for a "green New Deal", increasing the energy efficiency of homes and making greater use of sustainable power sources. In his CBI speech earlier, Mr Brown hinted at more announcements along these lines in the PBR.
1146 On its front page, the London Evening Standard proclaims: "Brown goes for broke." The newspaper says the prime minister is "gambling a fortune of borrowed money to beat the slump". Meanwhile, its City editor, Chris Blackhurst, says Mr Darling "is in dreamland" if he thinks a VAT cut and creating a 45% income tax rate for earnings above £150,000 a year "will make the slightest difference" to the situation.1146 On its front page, the London Evening Standard proclaims: "Brown goes for broke." The newspaper says the prime minister is "gambling a fortune of borrowed money to beat the slump". Meanwhile, its City editor, Chris Blackhurst, says Mr Darling "is in dreamland" if he thinks a VAT cut and creating a 45% income tax rate for earnings above £150,000 a year "will make the slightest difference" to the situation.
1135 Conservativehome blog about 45% tax rate: Iain says: "The Conservatives should NOT make this a totem issue." Jennifer Wells says: "We mustn't be diverted from our key messages". Comstock says: "Shame it's not 50%." The Bishop Swine says: "40% is historically low and they can afford it." London Tory says: "This will hit floating, aspirational voters in target seats." Western Star says: "It has always amused me to hear us described as "The Nasty Pasty" when it is Labour, red in tooth and claw that has always scratched and picked at the class divide." Richard J says: "All those earning over £150K should go on strike." Read more on Conservativehome.1135 Conservativehome blog about 45% tax rate: Iain says: "The Conservatives should NOT make this a totem issue." Jennifer Wells says: "We mustn't be diverted from our key messages". Comstock says: "Shame it's not 50%." The Bishop Swine says: "40% is historically low and they can afford it." London Tory says: "This will hit floating, aspirational voters in target seats." Western Star says: "It has always amused me to hear us described as "The Nasty Pasty" when it is Labour, red in tooth and claw that has always scratched and picked at the class divide." Richard J says: "All those earning over £150K should go on strike." Read more on Conservativehome.
1137 Have Your Say "Over-priced housing is the cause of the problem: 25% of people's salaries go straight to repayments. Regulation of the housing market is required, starting with a mandatory devaluation of all house prices and outstanding mortgages"Godfrey Bartlett, Essex, UK1137 Have Your Say "Over-priced housing is the cause of the problem: 25% of people's salaries go straight to repayments. Regulation of the housing market is required, starting with a mandatory devaluation of all house prices and outstanding mortgages"Godfrey Bartlett, Essex, UK
1136 News from the City. Barclays says it is on course to secure shareholder backing for a £7bn fundraising that could put almost a third of the bank into Middle East ownership.1136 News from the City. Barclays says it is on course to secure shareholder backing for a £7bn fundraising that could put almost a third of the bank into Middle East ownership.
1135 Spare a thought for the UK's publicans. Not only is the financial climate looking bad, but the weather itself is adding to their misery. A poll for The Publican newspaper found that 75% of pubs blamed the terrible summer for much of the downturn in trade over the past year, ahead of 68% who cited the credit crunch.1135 Spare a thought for the UK's publicans. Not only is the financial climate looking bad, but the weather itself is adding to their misery. A poll for The Publican newspaper found that 75% of pubs blamed the terrible summer for much of the downturn in trade over the past year, ahead of 68% who cited the credit crunch.
1127 It's not just the UK which is experiencing a build-up of excitement. In Paris, French President Nicolas Sarkozy is due to meet German Chancellor Angela Merkel to discuss a co-ordinated, Europe-wide package to combat the economic downturn.1127 It's not just the UK which is experiencing a build-up of excitement. In Paris, French President Nicolas Sarkozy is due to meet German Chancellor Angela Merkel to discuss a co-ordinated, Europe-wide package to combat the economic downturn.
1127 Have Your Say "The emphasis needs to be on job creation and stepping up investment in public infrastructure is the obvious route"Dick, Penzance, UK1127 Have Your Say "The emphasis needs to be on job creation and stepping up investment in public infrastructure is the obvious route"Dick, Penzance, UK
1126 Have Your Say "If the government wants to help small businesses and halt falling house prices, why don't they cut corporation tax for small businesses and remove stamp duty?"Carl Roberts, Manchester, UK1126 Have Your Say "If the government wants to help small businesses and halt falling house prices, why don't they cut corporation tax for small businesses and remove stamp duty?"Carl Roberts, Manchester, UK
1118 Liberal Democrat Treasury spokesman Jeremy Browne says the government is planning to borrow too much. He adds that the money borrowed should not be spent just on tax cuts, but could go towards projects like building more social housing.1118 Liberal Democrat Treasury spokesman Jeremy Browne says the government is planning to borrow too much. He adds that the money borrowed should not be spent just on tax cuts, but could go towards projects like building more social housing.
1116 Have Your Say "Surely we do not have so many people earning over £150K that taxing them 5% more is going to solve the crisis of debt in the future."Ian, Bristol, UK1116 Have Your Say "Surely we do not have so many people earning over £150K that taxing them 5% more is going to solve the crisis of debt in the future."Ian, Bristol, UK
1115 CBI director general Richard Lambert says the chancellor has to give a "credible route map" for returning to balanced government budgets. Mr Brown and Mr Cameron have "completely different" plans, in contrast with a more consensual approach in recent years, he adds. The Conservatives were worried about inheriting a difficult situation, Mr Lambert says.1115 CBI director general Richard Lambert says the chancellor has to give a "credible route map" for returning to balanced government budgets. Mr Brown and Mr Cameron have "completely different" plans, in contrast with a more consensual approach in recent years, he adds. The Conservatives were worried about inheriting a difficult situation, Mr Lambert says.
1113 With almost four and a half hours to go until Mr Darling starts to deliver his pre-Budget report, a point about etiquette. The House of Commons treats it like an ordinary ministerial statement. So, after Mr Darling speaks, his Tory and Lib Dem opposites, George Osborne and Vince Cable, will address MPs. This is unlike the Budget, where party leaders follow the chancellor.1113 With almost four and a half hours to go until Mr Darling starts to deliver his pre-Budget report, a point about etiquette. The House of Commons treats it like an ordinary ministerial statement. So, after Mr Darling speaks, his Tory and Lib Dem opposites, George Osborne and Vince Cable, will address MPs. This is unlike the Budget, where party leaders follow the chancellor.
1103 The weather at Westminster is grey and cold. There must be a shiver or two a few miles away at the Bank of England, where four Greenpeace protesters have climbed onto the Bank of England to call for more investment in environmentally friendly technology. The chancellor is currently briefing the cabinet on his plans. Shivers down a few spines there - or some old Labour hearts warmed?1103 The weather at Westminster is grey and cold. There must be a shiver or two a few miles away at the Bank of England, where four Greenpeace protesters have climbed onto the Bank of England to call for more investment in environmentally friendly technology. The chancellor is currently briefing the cabinet on his plans. Shivers down a few spines there - or some old Labour hearts warmed?
1102 Jdc, Labourhome: The Tories... have no plan whatsoever to soften the recession... they're actively barking. Cut public spending? When the private sector is shrinking? Make up the difference by bigger cuts in interest rates, when the problem is that we're reaching the limit of what the world is prepared to lend to the UK private and individual sector anyway? Read more on Labourhome.1102 Jdc, Labourhome: The Tories... have no plan whatsoever to soften the recession... they're actively barking. Cut public spending? When the private sector is shrinking? Make up the difference by bigger cuts in interest rates, when the problem is that we're reaching the limit of what the world is prepared to lend to the UK private and individual sector anyway? Read more on Labourhome.
1058 Amid all the speculation over the PBR, the FTSE 100 index of leading shares is up almost 4%.1058 Amid all the speculation over the PBR, the FTSE 100 index of leading shares is up almost 4%.
1054 Asked why he has not done more to counter Labour's economic policies, Mr Cameron says the Conservative Party has given "consistently strong warnings" on the level of government debt. He says the fact that the recession in the UK is deeper is because the economy has become unbalanced in recent years.1054 Asked why he has not done more to counter Labour's economic policies, Mr Cameron says the Conservative Party has given "consistently strong warnings" on the level of government debt. He says the fact that the recession in the UK is deeper is because the economy has become unbalanced in recent years.
1053 Have Your Say "Unless this government seriously looks at getting the housing market moving it will collapse. They need to reduce the stamp duty on the middle to high-end properties."John Walker, Essex, UK1053 Have Your Say "Unless this government seriously looks at getting the housing market moving it will collapse. They need to reduce the stamp duty on the middle to high-end properties."John Walker, Essex, UK
1052 Have Your Say "Why has there been no mention of cutting public spending? Why should those in the public sector be cocooned from the effects of the recession?"David, Huddersfield, UK1052 Have Your Say "Why has there been no mention of cutting public spending? Why should those in the public sector be cocooned from the effects of the recession?"David, Huddersfield, UK
1051 Have Your Say "The suggestion that the VAT reduction will come in time for Christmas will surely completely stall sales in the high street for the moment. I for one won't be purchasing the higher value items on my list now"Robert, Reading, UK1051 Have Your Say "The suggestion that the VAT reduction will come in time for Christmas will surely completely stall sales in the high street for the moment. I for one won't be purchasing the higher value items on my list now"Robert, Reading, UK
1046 Cities need strong, independent mayors to help restore the health of regional economies, the Conservative leader says.1046 Cities need strong, independent mayors to help restore the health of regional economies, the Conservative leader says.
1042 Answering questions, Mr Cameron says the government has to be imaginative. The UK's budget deficit is enormous and ministers are borrowing for a "short-term boost", which will do little to stimulate the economy, he adds.1042 Answering questions, Mr Cameron says the government has to be imaginative. The UK's budget deficit is enormous and ministers are borrowing for a "short-term boost", which will do little to stimulate the economy, he adds.
1038 The Conservative leader says the government's "warm words" on deregulation are "meaningless". It is time to build an economy that is "built to last" and less reliant on just a few sectors, he adds.1038 The Conservative leader says the government's "warm words" on deregulation are "meaningless". It is time to build an economy that is "built to last" and less reliant on just a few sectors, he adds.
1034 The Tories would end Labour's "spendaholic culture", Mr Cameron says. He argues that an independent Office of Budget Responsibility should be established to monitor taxation.1034 The Tories would end Labour's "spendaholic culture", Mr Cameron says. He argues that an independent Office of Budget Responsibility should be established to monitor taxation.
1031 The prime minister should stop misrepresenting Conservative policy, Mr Cameron says. The gap between government revenue and expenditure is likely to be a "mind-boggling" £80bn this year, he adds.1031 The prime minister should stop misrepresenting Conservative policy, Mr Cameron says. The gap between government revenue and expenditure is likely to be a "mind-boggling" £80bn this year, he adds.
1029 Mr Cameron says blaming the crisis on events in the US alone is "nonsense". He promises the Tories would allow small businesses to delay VAT payments by 10 months.1029 Mr Cameron says blaming the crisis on events in the US alone is "nonsense". He promises the Tories would allow small businesses to delay VAT payments by 10 months.
1027 David Cameron is speaking to the CBI conference. He jokes that the prime minister has given the absent CBI secretary general a "Glasgow kiss".1027 David Cameron is speaking to the CBI conference. He jokes that the prime minister has given the absent CBI secretary general a "Glasgow kiss".
1024 A little pre-Budget report fact. It was introduced by Mr Brown, as chancellor, in 1997. At the time he promised it would "help build the foundations of shared understanding" between government, business and the public. Mr Darling, accused by critics of setting a "tax bombshell", will be praying he achieves this later.1024 A little pre-Budget report fact. It was introduced by Mr Brown, as chancellor, in 1997. At the time he promised it would "help build the foundations of shared understanding" between government, business and the public. Mr Darling, accused by critics of setting a "tax bombshell", will be praying he achieves this later.
1013 Have Your Say "How on earth are all the details of this in the public domain 24 hours before they are announced? It is another great example of how these inept politicians are attempting to govern by leak, secret briefing and spin. This kind of thing should remain confidential until it is announced." Nick Harvey, London, UK1013 Have Your Say "How on earth are all the details of this in the public domain 24 hours before they are announced? It is another great example of how these inept politicians are attempting to govern by leak, secret briefing and spin. This kind of thing should remain confidential until it is announced." Nick Harvey, London, UK
1013 Mr Hammond says the reports of a rise in income tax for people earning more than £150,000 will not fill the financial "black hole" created by Labour's plans.1013 Mr Hammond says the reports of a rise in income tax for people earning more than £150,000 will not fill the financial "black hole" created by Labour's plans.
1011 For the Conservatives, shadow chief secretary to the Treasury Philip Hammond warns of a "tax bombshell" if Mr Darling's borrowing plans go ahead. He says it is not obvious that a cut in VAT will change people's behaviour.1011 For the Conservatives, shadow chief secretary to the Treasury Philip Hammond warns of a "tax bombshell" if Mr Darling's borrowing plans go ahead. He says it is not obvious that a cut in VAT will change people's behaviour.
1009 Have Your Say "Tax cuts and lowering VAT will make no difference when people are fearful of losing their jobs. Protecting jobs by encouraging small business and reducing National Insurance for employers would be the real stimulus." Paul, Aberdeen, UK1009 Have Your Say "Tax cuts and lowering VAT will make no difference when people are fearful of losing their jobs. Protecting jobs by encouraging small business and reducing National Insurance for employers would be the real stimulus." Paul, Aberdeen, UK
1008 Despite Mr Brown's joke to the contrary at the CBI conference, BBC political correspondent David Thompson says the PBR "will have the prime minister's fingerprints all over it".1008 Despite Mr Brown's joke to the contrary at the CBI conference, BBC political correspondent David Thompson says the PBR "will have the prime minister's fingerprints all over it".
1003 CBI president Martin Broughton has criticised the government for apparently divulging details of the pre-Budget ahead of the chancellor's statement to MPs, saying: "The Treasury appears to be leaking like a sieve."1003 CBI president Martin Broughton has criticised the government for apparently divulging details of the pre-Budget ahead of the chancellor's statement to MPs, saying: "The Treasury appears to be leaking like a sieve."
1001 The impact of the economic slowdown continues to be felt - luxury car company Aston Martin has said it will extend its planned Christmas shutdown for another two weeks. This follows a scaling back of manufacturing by Honda, Jaguar Land Rover and Mini.1001 The impact of the economic slowdown continues to be felt - luxury car company Aston Martin has said it will extend its planned Christmas shutdown for another two weeks. This follows a scaling back of manufacturing by Honda, Jaguar Land Rover and Mini.
0956 The prime minister gets more applause from CBI delegates as he leaves the stage. Conservative leader David Cameron addresses the conference soon, with Business Secretary Lord Mandelson expected to give a speech shortly after Mr Darling unveils the pre-Budget report this afternoon.0956 The prime minister gets more applause from CBI delegates as he leaves the stage. Conservative leader David Cameron addresses the conference soon, with Business Secretary Lord Mandelson expected to give a speech shortly after Mr Darling unveils the pre-Budget report this afternoon.
0954 Have Your Say "The government plead with us to 'shop our way out of the crisis', yet they forget that most people who are in difficulty got there precisely because of their own uncontrolled shopping on credit urges." Nick, Reading, UK0954 Have Your Say "The government plead with us to 'shop our way out of the crisis', yet they forget that most people who are in difficulty got there precisely because of their own uncontrolled shopping on credit urges." Nick, Reading, UK
0953 The CBI's director general, Richard Lambert, asks a question about the future relationship between business and government. Mr Brown says the UK must have the best skills base possible, ensure better technology is developed and encourage a spirit of entrepreneurship.0953 The CBI's director general, Richard Lambert, asks a question about the future relationship between business and government. Mr Brown says the UK must have the best skills base possible, ensure better technology is developed and encourage a spirit of entrepreneurship.
0949 The government wants to continue investment in infrastructure, including high-speed rail, the PM says.0949 The government wants to continue investment in infrastructure, including high-speed rail, the PM says.
0948 Mr Brown says the government has no desire to be a permanent shareholder in banks.0948 Mr Brown says the government has no desire to be a permanent shareholder in banks.
0946 The PM says he wants co-ordinated action by leading economic powers. The government will show a "path to fiscal stability" in the PBR, he adds. We're expecting a new 45p tax rate for earnings over £150,000 to be one part of that "path".0946 The PM says he wants co-ordinated action by leading economic powers. The government will show a "path to fiscal stability" in the PBR, he adds. We're expecting a new 45p tax rate for earnings over £150,000 to be one part of that "path".
0943 Mr Brown says his government will have strong relationships with the administration of US President-elect Barack Obama after he comes to power in January next year.0943 Mr Brown says his government will have strong relationships with the administration of US President-elect Barack Obama after he comes to power in January next year.
0942 Having said that, the prime minister says there will be announcements later on VAT paid by businesses on empty properties.0942 Having said that, the prime minister says there will be announcements later on VAT paid by businesses on empty properties.
0940 Mr Brown is taking questions from CBI members. He jokes that the "man with the power" is the chancellor as he says he cannot announce details of the pre-Budget report yet.0940 Mr Brown is taking questions from CBI members. He jokes that the "man with the power" is the chancellor as he says he cannot announce details of the pre-Budget report yet.
0938 Have Your Say "Cutting VAT will only reduce the revenue to the government. There will be no 'spending spree', leaving the government in a larger financial hole." Nic, Windlesham, UK0938 Have Your Say "Cutting VAT will only reduce the revenue to the government. There will be no 'spending spree', leaving the government in a larger financial hole." Nic, Windlesham, UK
0937 This is a time for confidence, Mr Brown says, if Britain is to emerge stronger from the crisis. The speech ends to applause from CBI members.0937 This is a time for confidence, Mr Brown says, if Britain is to emerge stronger from the crisis. The speech ends to applause from CBI members.
0936 Mr Brown says the pre-Budget report - due to be announced in the House of Commons at 1530 GMT - will include support for "new investment in the low-carbon economy".0936 Mr Brown says the pre-Budget report - due to be announced in the House of Commons at 1530 GMT - will include support for "new investment in the low-carbon economy".
0934 There is scope for the government to increase borrowing, Mr Brown says. He cites the American New Deal of the 1930s. The government will act to help ensure small businesses get access to funds, he adds.0934 There is scope for the government to increase borrowing, Mr Brown says. He cites the American New Deal of the 1930s. The government will act to help ensure small businesses get access to funds, he adds.
0932 The plan for recovery is "broadly based", Mr Brown tells the CBI conference. Tax policy and interest rate cuts must be co-ordinated to maximise their impact.0932 The plan for recovery is "broadly based", Mr Brown tells the CBI conference. Tax policy and interest rate cuts must be co-ordinated to maximise their impact.
09.20 Richard Hyslop (Federation of Master Builders), Conservativehome blog:Those suggesting that the UK Government cannot lower VAT below 15 per cent are wrong. The UK Government can currently lower VAT to five per cent on anything it wishes provided there is a social goal attached... in the last Budget, page 86 of the Red Book, there was a commitment to reduce VAT from 17.5 per cent to five per cent for repair and maintenance work for properties that are considered "hard to let or hard to sell". Read more on Conservativehome.09.20 Richard Hyslop (Federation of Master Builders), Conservativehome blog:Those suggesting that the UK Government cannot lower VAT below 15 per cent are wrong. The UK Government can currently lower VAT to five per cent on anything it wishes provided there is a social goal attached... in the last Budget, page 86 of the Red Book, there was a commitment to reduce VAT from 17.5 per cent to five per cent for repair and maintenance work for properties that are considered "hard to let or hard to sell". Read more on Conservativehome.
0931 Mr Brown says mistakes were made in the recessions of the 1980s and 1990s. The best way to ensure taxes are lowered in the long term is to boost the economy now, he adds. The fiscal stimulus - to be unveiled by the chancellor later - will be temporary, the prime minister says.0931 Mr Brown says mistakes were made in the recessions of the 1980s and 1990s. The best way to ensure taxes are lowered in the long term is to boost the economy now, he adds. The fiscal stimulus - to be unveiled by the chancellor later - will be temporary, the prime minister says.
0930 Have Your Say "Increase the tax rate for higher earners and increase the tax free allowance. This would help everyone, but help the lowest earners the most. Don't tinker with VAT, that won't achieve anything." Helen, Fleet, UK0930 Have Your Say "Increase the tax rate for higher earners and increase the tax free allowance. This would help everyone, but help the lowest earners the most. Don't tinker with VAT, that won't achieve anything." Helen, Fleet, UK
0929 Have Your Say "A VAT decrease will not necessarily see a reduction in the cost of goods and services because the margins of suppliers are being eroded already. It will be impossible to ensure that prices go down as this is left to the supplier." Jarrod, Leeds, UK0929 Have Your Say "A VAT decrease will not necessarily see a reduction in the cost of goods and services because the margins of suppliers are being eroded already. It will be impossible to ensure that prices go down as this is left to the supplier." Jarrod, Leeds, UK
0928 Mr Brown attacks calls for protectionism. It is not the time to "become prisoners of old dogmas of the past", he says. Monetary policy alone cannot be relied upon to pull the country out of a downturn quickly, he adds.0928 Mr Brown attacks calls for protectionism. It is not the time to "become prisoners of old dogmas of the past", he says. Monetary policy alone cannot be relied upon to pull the country out of a downturn quickly, he adds.
0927 The prime minister says the world economy is likely to double in size over the next 20 years. The UK must not be "frozen into inaction" by the scale of current challenges, he adds.0927 The prime minister says the world economy is likely to double in size over the next 20 years. The UK must not be "frozen into inaction" by the scale of current challenges, he adds.
0926 Mr Brown says the "global flows of capital" must be complemented by more transparency in the way markets works and warns against an over-reliance on oil.0926 Mr Brown says the "global flows of capital" must be complemented by more transparency in the way markets works and warns against an over-reliance on oil.
0925 Mr Brown is speaking at the CBI conference. He praises the "dynamism" of British business and says it is time to look at the "scale" of the problems facing the global economy.0925 Mr Brown is speaking at the CBI conference. He praises the "dynamism" of British business and says it is time to look at the "scale" of the problems facing the global economy.
0918 Andy Ray, Labourhome blog: I suspect and hope that the Tories, in desperate times, will rather recoil back to their true doctrinaire corner and oppose (the reported new higher rate of income tax for earnings over £150,000) and take a McCain Joe-the-Builder type scare-mongering stance, albeit in vain! Read more on Labourhome.0918 Andy Ray, Labourhome blog: I suspect and hope that the Tories, in desperate times, will rather recoil back to their true doctrinaire corner and oppose (the reported new higher rate of income tax for earnings over £150,000) and take a McCain Joe-the-Builder type scare-mongering stance, albeit in vain! Read more on Labourhome.
0916 Have Your Say "People are suggesting that a cut in VAT is going to help everyone with the weekly shopping. Can I just remind everyone that VAT is does not exist on food, therefore the weekly shop will remain unchanged." Nadine, Oxford, UK0916 Have Your Say "People are suggesting that a cut in VAT is going to help everyone with the weekly shopping. Can I just remind everyone that VAT is does not exist on food, therefore the weekly shop will remain unchanged." Nadine, Oxford, UK
0914 What do we know already? It has been widely reported that the government will temporarily reduce the VAT rate from 17.5% to 15% to encourage spending. The chancellor is also expected to extend the £120 rebate for low earners who lost out through the abolition of the 10p income tax rate. There are reports there will be moves to increase the "period of grace" before lenders repossess homes to three months and scrap plans to increase vehicle excise duty for another year. The BBC also understands that people earning over £150,000 a year could pay 45% income tax after the next general election, if Labour wins.0914 What do we know already? It has been widely reported that the government will temporarily reduce the VAT rate from 17.5% to 15% to encourage spending. The chancellor is also expected to extend the £120 rebate for low earners who lost out through the abolition of the 10p income tax rate. There are reports there will be moves to increase the "period of grace" before lenders repossess homes to three months and scrap plans to increase vehicle excise duty for another year. The BBC also understands that people earning over £150,000 a year could pay 45% income tax after the next general election, if Labour wins.
0912 Good morning. After all the speculation over Chancellor Alistair Darling's pre-Budget report, the day of delivery is upon us. The main announcement, in the House of Commons, starts at about 1530 BST. But before then leading politicians, including Prime Minister Gordon Brown and Conservative leader David Cameron, give speeches at the CBI conference. We will be reporting on all the key events as they happen, bringing you the reaction and expert analysis. We will also publish a selection of your comments as the day unfolds. You will be able to watch all the big speeches live on this page.0912 Good morning. After all the speculation over Chancellor Alistair Darling's pre-Budget report, the day of delivery is upon us. The main announcement, in the House of Commons, starts at about 1530 BST. But before then leading politicians, including Prime Minister Gordon Brown and Conservative leader David Cameron, give speeches at the CBI conference. We will be reporting on all the key events as they happen, bringing you the reaction and expert analysis. We will also publish a selection of your comments as the day unfolds. You will be able to watch all the big speeches live on this page.