Pre-budget report sees VAT cut
Updated on 24 November 2008
The annual pre-budget report is released today, but it is expected to read more like an emergency budget.
Among the measures aimed at stimulating the economy out of recession are a cut in VAT from 17.5 per cent to 15 per cent, beginning immediately.
The chancellor will also set out how such measures will be paid for in the long-term.
It's already been leaked that he'll announce a new income tax rate of 45 per cent for those who earn more than £150,000, to be introduced after the next election.
The entire package will represent a huge gamble, increasing government debt even further, but will it work?
