Shoppers will be encouraged to hit the High Street to boost Britain’s ailing economy, according to speculation surrounding a mini-budget today.
Finance Minister Alistair Darling is preparing to unveil a series of emergency measures aimed at staving off a deep recession.
But the expected package of tax cuts and extra public spending, funded by borrowing, has been slammed by the opposition Conservatives. They say it is a bombshell because tax rises will inevitably follow. For top earners, an increase in income tax is reportedly planned.
As for value added tax, it is hoped a temporary cut by as much as two and a half percent could give consumers a pre-Christmas boost.
So far, Prime Minister Gordon Brown’s handling of the financial crisis has lifted his flagging popularity ratings. With a general election coming ever closer, he can only hope that a festive cash injection will continue that trend.