PwC: Tax cuts expected in PBR

Posted on 20 November 2008

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Alistair Darling has a number of options available to him if he wishes to announce tax cuts in his pre-budget report (PBR), it has been claimed.

PricewaterhouseCoopers tax partner John Whiting predicts the chancellor could be granted £15 billion by the government to kick-start the economy – money he is likely to spend on a number of projects.

He said his firm was looking forward to seeing how UK fiscal policy was going to help improve business conditions given the tough economic climate.

Among the predictions being made by PwC are cash flow assistance for small businesses and the abandonment of a scheduled one per cent hike in corporation tax for firms earning up to £300,000 per year.

Commenting on the PBR, Mr Whiting added: "The chancellor cannot just be in Father Christmas mode for the PBR. Necessary short-term giveaways must be tempered with realism about medium and longer term tax strategy."

The government has announced that the annual autumn statement will be given on Monday November 24th.

Category: Tax & Legislation News

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