VAT 'to be cut by chancellor'

24/11/2008

The chancellor seems set to introduce dramatic new reforms today, in order to boost the economy and ward off the worst effects of the credit crunch.

Alistair Darling is likely to announce that VAT is to be cut from 17.5 to 15 per cent today in his pre-budget report.

What's more, low income families are to get an extension of the present £120 tax rebate, while planned increases to corporation tax and vehicle excise duty are to be binned.

People who earn over £150,000 a year are also to face increased income tax after the election, sources told the BBC.

The chancellor received strong backing for his radical plans from Gordon Brown today.

"This is not the time to become prisoners of the old dogmas of the past," the prime minister told business leaders.

"All over the world, policy makers are leaving behind the solutions of yesterday and recognising that extraordinary times require extraordinary actions."

However, Conservative leader David Cameron told the Sunday Times that the government was pursuing "scorched earth" economic plans.

Tags; Income Worries and Debt, Credit Card Lifestyle, Recent Graduate Debt, Young Family Finances, Retirement Money Problems,

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