Derek Simpson backs moderate to lead Unite
Leaked emails over Mike Hancock scandal
David Miliband tipped for top EU job
87% of MPs raking it in with second jobs
David Cameron exclusive interview
"Red Ed" negotiates a minefield
"Red" Ed's knife-edge win
Don't strike over cuts, says union boss
Harman blocks Gordon Brown's farewell honours
Child benefit for older kids faces axe
Ed Miliband edges ahead of bruv in Labour leadership race
Gordon's spend now pay later


GORDON Brown today promises immediate help for EVERY family in credit-crunch Britain.
Writing exclusively in the News of the World the PM pledges tax cuts to help people pay their bills and keep their jobs and homes.
And he insists that borrowing more than all previous British governments put together in the only way out of the recession.
Brown writes: “I want every household facing difficulty at this time to know we are ready to help and on their side.
“We need to give people help now.”
But his promises come as we reveal Britain’s secret national debt is almost THREE times higher than the government will admit in tomorrow’s pre-Budget report.
The government claims Britain’s national debt is £563 billion.
But that does not include:
:: £87 billion for nationalising Northern Rock
:: £725 billion owed for public sector pensions
:: £110 billion in private finance initiative bills
That means the true cost of Britain’s national debt is a staggering £1.485 TRILLION.
Even the Institute for Fiscal Studies - one of Britain’s most respected think-tanks, with close links to Brown - says that is the real figure.
And the state of our national coffers is set to get even worse with Britain expected to borrow up to £120 billion a year by 2011.
After tomorrow’s PBR Brown will have borrowed more than all previous British governments put together.
Taxpayers already spend over £300 a year EACH just on the interest on national debt.
The government spends more on debt interest than in does on schools, transport or the entire Home Office budget.
But Brown insists borrowing is the only way out of the mess.
He said: “We need to take urgent action now. And in Britain we can afford to do more now.
“If we do not act now the downturn will be longer and more severe.
“A prolonged recession means people out of work for longer, more repossessions and businesses taking longer to start growing again.”
The PM and Chancellor Alistair Darling will use tomorrow’s mini-Budget to announce a package of tax cuts and increased spending worth tens of billions of pounds - all funded by borrowing more.
They will cancel planned tax rises on cars, small businesses and Income Tax allowances. They will also make temporary tax cuts for low-income families who are more likely to spend the cash and give the economy a boost.
And they will increase spending on schools, hospitals and transport projects that can get off the ground quickly.
But the government will have to admit any tax cuts now will have to be paid for by tax rises and spending curbs in the future.
The government is expected to extend the decision to raise the personal tax allowance for basic rate taxpayers by £600.
It raised it for one year after the row over the 10p tax rate cut. But it is expected to do the same for the next three years.
The state pension will go up by between £4 and £5 a week.
There will also be increases in tax credits for poor families and a big increase in child benefits.
There is also mounting speculation of a temporary cut in VAT.
The government will also call on banks to freeze overdraft charges for small businesses.
Natwest and the Royal Bank of Scotland will today announce they are doing just that.
And Brown and Darling will tell other banks to follow suit.
Darling will also announce that struggling homeowners will be given three months’ grace before lenders reposses their houses. That will give them time to renegotiate their loans and get financial help.
Schemes allowing owners to sell part of their homes to councils and help those who have lost their jobs with mortgage interest payments will be extended.
And bailed-out banks could be threatened with full nationalisation if they don’t increase lending.
The Budget will present a massive challenge to the Tories.
They have promised to oppose a giveaway that is funded by borrowing.
But David Cameron knows he cannot afford to be seen to be against struggling families getting help with their bills.
A senior Tory source said: “I cannot believe we would be in that position.”
Shadow Chancellor George Osborne said: "However Gordon Brown wraps it up, it's still a Christmas tax bombshell.
"He is taking the British people for fools if he thinks they can't spot the difference between a tax cut and a tax con.
"Only the Conservatives will deliver lower taxes that last."
end

 

Comments



    Keeping one eye on the rest of the web
  Westminster blog spy