Darling’s plans to boost economy are revealed

| November 23, 2008 | 0 Comments

Chancellor Alistair Darling is to announce plans to boost the economy in his Pre-Budget report this week.

The plans are expected to include spending rises and a cut in VAT by 2.5% in a bid to stimulate the economy and prevent a ‘very deep recession’.

However, the plans will come at a huge price as the Government plans to borrow over £100 billion that will have to be paid back in the years to come, when the economy is expected to recovery, perhaps 2010 or 2011.

Furthermore, those on lower incomes will see their £120 rebate extended for a further year, after they lost out when the 10p tax rate was done away with.

In addition, the period of grace before lenders repossess homes is also expected to increase to three months.

Economies throughout the world have been suffering as a result of the global downturn. Other countries including China and Japan have recently announced stimulus packages to boost their economies.

The severity of the downturn in the UK was highlighted earlier this month when the Bank of England slashed interest rates by 1.5% to 3% - the lowest level since the 1950s.

The Pre-Budget is to take place tomorrow, Monday 24 November, at the House of Commons.

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