tax cuts

[creditcrunched]

get a joint of ham ordered aswell as the 20lb turkey[:D]

Speculation is growing that Prime Minister Gordon Brown is planning a £15 billion package of tax cuts to boost the ailing economy.

Mr Brown fuelled expectations of tax cuts in the upcoming Pre-Budget Report when he said there was an "emerging consensus" internationally on the need for fiscal policy to support the interest rate cuts announced by the Bank of England and European Central Bank.

He and Chancellor Alistair Darling have repeatedly stated that now is not the time to take money out of the economy, as businesses look for consumer spending to maintain growth.

The Treasury refused to comment on the contents of Mr Darling's PBR, due within the next few weeks, and dismissed as "speculative" a report in the Financial Times which said he was considering an emergency package of tax cuts and public spending.

But the Sunday Mirror quotes an unnamed "senior ministerial source" as saying: "There's going to be a major package of tax cuts and public spending.

"We're not trying to spend our way out of trouble, but urgent action is needed to stimulate the economy. We're talking about measures totalling between £10 billion and £15 billion."

The paper suggests Mr Darling could increase tax credits for low-income families, extend the stamp-duty "holiday" on less expensive homes, boost the winter fuel payment for the elderly, delay planned hikes in petrol duty or even cut the basic rate of income tax.

Meanwhile, the Sunday Express predicted tax cuts worth an average of £480 to every household in the country, quoting an unnamed minister as saying: "Public finances are tight but tax cuts can be justified in the current circumstances. We have to find a way of putting money into people's pockets because they are really hurting."

With Mr Brown making clear he does not plan to cut back on public spending, any tax reductions are likely to have to be funded from borrowing, raising the spectre of tax hikes after the current economic downturn has concluded.

[kallis3]

Just in time for Christmas!!!!!!!!!!

Could be a good celebration this year![:D]

[go_4_broke]

I think this is a much fairer way of helping people than making banks distribute the taxpayers money they have been given to homeowners via forced cuts in interest rates.

This will potentially help everyone including all those in the rented sector.

However I'm sure as cc hints there will have to be massive tax hikes to pay for this, probably immediately after the next election and regardless of who wins.

[Skippy]

Hmmm, there must be an election on the way!

Where is the money coming from to pay for these tax cuts, as well as everything Brown has already borrowed?

[kallis3]

I think the answer lie above Skip - there will be massive tax rises after the next general election.

This is a sweetener, the aftermath will be a bitter pill to swallow.

[creditcrunched]

More borrowing required and when the economy is on the up he will hit us hard with taxes[:I]

[plasticdaft]

The timing of this is to help stimulate the xmas spending methinks. Whilst the tax cuts will be gratefully received I wouldnt trust any politician as far as I could throw them!!!

[kallis3]

My Christmas spending will still be less than normal, tax cuts or no tax cuts.

If that does happen, I imagine people will spend like there is no tomorrow, once the bills hit the mat in January, expect this site to be overloaded with enquiries.

[Skippy]

Exactly - another cynicaly ploy from a government that doesn't know what to do other than spend! Do you think we'll see an enquiry from gordon_b saying he's £600 billion in debt, please can someone give him some advice?!?!

[kallis3]

My reply would be unprintable!

[Lisa2009]

[:D][:D][:D]