News in brief
The Chancellors numbers
The Chancellor, Mr Darling during his inaugural Pre-Budget Report cut the growth forecast for 2008 from between 2.5 and 3 per cent to between 2 and 2.5 per cent.
The forecasts for 2007, 2009 and subsequent years were unchanged with the economy neither overheating nor slumping.
The cyclically adjusted public sector net borrowing, the Treasury is expecting to rise from 2.2 per cent of gross domestic product in 2006-07 to 2.8 per cent in 2007-08.
The forecast for tax revenues has also been reduced by the Treasury by £7bn for 2008-09, some 1.2 per cent of total revenues. The main reason is that it expects slower aggregate earnings growth to wipe £4.2bn off income tax revenues and lower financial sector profits to reduce corporation tax by £3bn.
By the end of the next financial year, the Treasury announced that public borrowing over the two years would be £11bn higher than expected in the Budget.
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 | This article is for your general information and use only and are not intended to address your particular requirements. The articles are based on our understanding as at the 7th November 2008. They should not be relied up on in their entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. Articles that make reference to the Pre-Budget Report are subject to the Finance Bill becoming law. |