The Chancellor, Alistair Darling, announced his Pre Budget Report on 24 November 2008.
Parts of his speech came as little surprise, such as the reduction in the rate of VAT to 15% which, as seems to have become common place in recent years, had already received much debate by the press prior to its official announcement. The reduction in VAT was matched by increases in duty on fuel, drinks and tobacco to leave "prices" unchanged. However for businesses incurring fuel costs, the VAT could have been reclaimed, the increase in duty cannot.
The Chancellor's proposed plans are to incur record borrowing levels of £118bn, he included in his speech his plans for eventually trying to repay the debt by an increase in National Insurance by 0.5% from April 2011 and a 45% tax rate for those earning over £150,000 also from April 2011.
The Chancellor also announced various other measures he would be taking in an attempt to ease the country in this time of recession, as well as the usual unveiling of the proposed rates for Personal Allowances and National Insurance Contributions for the forthcoming year which it has now become common place to announce in the Pre Budget Report.
Further details on the announcements can be found on the following links