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Gord's £30 Billion tax cuts gift

GORDON Brown is to hand families a bumper Christmas tax bonus as part of a £30 billion package to save the British economy.

It will result in tax cuts that will be worth up to £1,000 for each family.

And the PM will pump

billions more into new government

programmes in a desperate bid to kick-start the faltering economy.

Most of the tax-cutting proposals will be introduced before Christmas. Others will follow after.

Mr Brown spoke of his plans at a meeting of 20 world leaders in Washington, who last night BACKED his call for a global spending spree.

He will claim the G20 summit’s agreement as a victory because the leaders signed up as he urged to a deal to use "fiscal" measures

tax cuts and spending

designed to rapidly stimulate the economy.

Afterwards the PM said: "Today’s G20 meeting is historic. We have reached important conclusions about trade, about financial stability and expansion of our economies.

"By the actions that we take, savings are saved, people will be able to keep their jobs, they will not lose their homes

in all of our countries.

"These are extraordinary times and they do require extraordinary measures."

Revealing his tax cuts bonanza, Mr Brown said: "We want to have measures that could show results as quickly as is possible.

"We have already provided a £120 tax rebate for 22 million basic rate taxpayers. The Chancellor will outline the action we are taking to help families get through this difficult period."

The PM is planning major tax cuts targeted at low-income families. They are likely to include increases in tax credits for families on incomes up to £60,000, along with extra help for pensioners.

The government says the huge 1.5 per cent cut in interest rates is not enough on its own to steer Britain out of recession. So at the same time the PM will pour vast sums into new schools, hospitals, leisure centres and social housing.

Mr Brown is desperate to act

before the recession hits its trough. Many details will be unveiled in the November 24 Pre-Budget Report. But controversially he will fund the package by increasing government borrowing to around £679bn.

He had originally planned tax cuts worth just £7billion. But he is desperate to ramp that up massively because of the scale of the economic crisis.

The £30bn programme of tax cuts and spending would be equivalent to two per cent of national income. There is an emerging consensus in other countries, particularly America, on that rate of spending.

And co-ordinated world action is vital. If Britain acted alone in cutting taxes about half of the extra cash would leak into higher imports.

But the PM faces a battle with Chancellor Alistair Darling who is said to be concerned at the scale of the plans.

He is also under pressure from Shadow Chancellor George Osborne who yesterday claimed the plans could cause the pound to collapse.

But Mr Brown hit back: "We are taking the policy that is absolutely essential to take people through difficult times."



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