The Pre-Budget Report and You

Although today’s Pre–Budget Report announced a massive £20 billion fiscal stimulus over the coming eighteen months, this has been done with a small number of new measures; most of the impact comes from the reduction in VAT on 1 December 2008  from 17.5 per cent to 15 per cent alone.

But be warned, if the economy does recover, the Chancellor is planning to claw-back today’s give-aways from 2010. The press headlines have focused on higher taxes for those earnings over £120,000 — but, in reality, most people earning over £20,000 will be hit then.

Read the full 'The Pre-Budget Report and You' (.PDF, 61KB)