Budget 2009: Business leaders 'looking for a lifeline'
- 00:02:28
- ITN
Budget 2009: Business leaders 'looking for a lifeline'
Speculation is growing as to the medicine Wednesday's Budget will handout to Britain's ailing economy. Chancellor Alistair Darling delivered an upbeat message on YouTube at the weekend and the bullish mood was echoed by Prime Minister Gordon Brown who said that Britain is "overcoming" the recession. But Mr Darling is under pressure to get to grips with the nation's debt and cut spending, while his own colleagues will be reminding him a General Election is less than 12 months away. Shadow Chancellor George Osborne predicted the Treasury would forecast the longest recession since 1945 and urged Mr Darling to scrap the Government's "unrealistic" future spending plans. This comes amid reports Mr Darling is already prepared to write off £60 billion that was lent to banks as part of their bailout. He is expected to concede the Government will not claw back all the money it pumped into the financial sector. Meanwhile, Mr Darling has been warned that plans to hike taxes for top earners are "very unlikely" to boost Treasury coffers. The Institute for Fiscal Studies (IFS) said a 45 per cent tax rate for those on incomes above £150,000 would not raise the £1.6 billion anticipated by Chancellor Alistair Darling in his Pre-Budget Report last November. The Liberal Democrats want the Government to abandon its "pointless" VAT cut and raise personal allowances instead. Mr Clegg said the Lib Dems would fight the next general election on a promise to raise the income tax personal allowance to £10,000 - cutting tax bills by £700-a-year for people on low and middle incomes. In a YouTube video message, Mr Darling said: "I want to make sure that we do two things. One is to help people now, through this difficult time. "But equally importantly, we've got to prepare for the future, to invest in Britain's future to ensure that we can take advantage of the upturn, of the recovery when it comes, and it will come.
ITN | April 20, 2009
