British PM mull tax cuts for ChristmasNovember 16th, 2008 - 1:53 pm ICT by ANI
London, Nov 16 (ANI): British Prime Minister Gordon Brown is said to be contemplating a package of tax cuts, thereby enabling people to have enough money to celebrate Christmas.
The PM will make changes to the tax credits regime and target extra help at less well-off families as quickly as possible to meet what he said was the government’’s fairness agenda.
The better off are not expected to be among the winners from the package, to be announced by Chancellor Alistair Darling in the Pre Budget Report (PBR) next week, reported The Telegraph.
The total stimulus to Britain’’s beleaguered economy could be more than the 15 billion pounds initially expected, which works out at 500 pounds for every family in the country.
However, there are clear signs of tension between Downing Street and the Treasury over the overall scope of the tax-cutting programme, which will be targeted at boosting retail spending in the run-up to Christmas.
Darling is understood to be advocating a more cautious approach, particularly as the measure can only be funded by increasing already high levels of government borrowing.
The Prime Minister admitted that other countries were less willing than Britain to bring in their own tax cuts a stance which could hurt UK exporters. He hit back at George Osborne, the shadow chancellor, for accusing him of pushing sterling to collapse by increasing government borrowing. The pound fell to 1.48 dollar last week.
The Prime Minister said: I believe that at a time when nations are coming together all over the world to deal with these problems, I think people are looking to politicians to be responsible and to show leadership. We are taking the policy that is absolutely essential to take people through these difficult times. (ANI)
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