The new Chancellor’s difficulty in emulating the free-spending, low-borrowing feats of his predecessor reflect the unique conditions Gordon Brown was able to exploit.
Insistence that the economy will grow by 3% this year, and faith in the budget’s later-year forecasts, soften the blow of conceding that growth could drop below the 2.5% trend in 2008.
The main budget commitments to health and education funding expansion are retained – but neither will match the growth rate of the past five years, despite the extra sources of tax.
Defying expectation that he would subtly change the rules, the Chancellor says he will stick by his predecessor’s commitment to balance the budget across the cycle.
The government has outlined new taxes on transport and more money for flood prevention and anti-coastal erosion schemes as part of its declared commitment to tackle global warning.
The government's continual fire-fight in their crusade against tax avoidance means this year's PBR features a whole host of retrospective measures.
Measures doubling the threshold below which taxpayers do not need to make in-year payments on account of their annual income tax liability under the ITSA system are set to affect over 300,000 with
A summary of the main tax announcements from the Pre-Budget Report, combined with 2008/09 measures which were announced back in March 2007 by Mr Darling’s predecessor:
There were no major VAT changes in Alistair Darling’s Pre-Budget Report today, although to be fair we weren’t expecting any as indirect tax changes tend to be announced only in the spring budget.
PBR 2007 - LIVE Running commentary
Stay tuned or click back - Accounting Web will be running a live update of Alistair Darling's Pre-Budget Report (PBR) below.