Darling announces debt advice help, VAT cut

25/11/2008

The chancellor has announced that an extra £15 million is to go towards extra debt advice for members of the public, as part of his pre-budget report statement.

Speaking in parliament yesterday, Alistair Darling said that his £20 billion plan to boost the economy would also temporarily cut sales tax from 17.5 to 15 per cent - making many Christmas presents cheaper to buy.

This year's £120 income tax rebate for basic rate earners is also to be extended - and increased to £145 from next April.

However, the government is facing criticism for its ambitious spending plans, which is increasing the UK's debts and is likely to lead to future tax rises for many people.

Speaking to the BBC, shadow chancellor George Osborne said: "They are taking a huge risk with the public finances."

However, Mr Darling told MPs yesterday that the extra spending was needed, due to the severity of the current economic slowdown.

"If we did nothing, we would have a deeper and longer recession that would cost the country more in the long term," he said.

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

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