Darling’s statement – the continuation thread

Alistair Darling has given his Pre-Budget Report speech, with the highlights being largely as expected: VAT cut from 17.5% to 15% for 13 months beginning on Monday, and an increase in the basic rate of Income Tax to 45% for those earning over £150,000.

What had not been leaked was the increase in National Insurance Contributions by 0.5% from April 2011 which has been targetted by George Osborne in his rebuttal. Similarly, I would be interested to see how increases in taxes on Tobacco, Alcohol and Fuel is treated in the press – this is designed to pay for the VAT reduction.

Stay at PB.com for the most-insightful reactions of our erudite commenters, and don’t forget to tune into Mike Smithson on Sky News (press the red button now).

Morus

HIGHLIGHTS:

Growth forecast for this year revised to read 0.75%, with forecast for next year revised to show the economy shrinking by between 0.75% and 1.25%

Borrowing forecast revised to £78bn (2008), £118bn (2009), £108bn (2010)

10p tax rebate made permanent at £145, and Vehicle Excise Duty increases deferred to 2010. Child Benefit to increase in January 2009 instead of April 2009.

£15m for free Debt Advice. £750m for Social Housing brought forward, and mortgage lenders will be prevented from seeking repossessions until mortgage-payers are at least three months in arrears.