Thursday, 31 December 2009

Pre-budget report is due next Wednesday

There is already speculation that announcements will be made about tax increases, necessary to balance the books (and halve the deficit over 4 years). Talk is about raising VAT within the next 18 months to at least 20% - already VAT is reverting back to 17.5% from January 1, 2010. Fiscal experts predict that such an increase will bring in about £9bn additional revenues per annum. There is also speculation that Mr Darling may increase capital gains tax to 20%.

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