As anticipated the tax announcements included: n Darling making a virtue of the current year’s deficit being “only” £167bn, justifying a range of limited, politically motivated, tax incentives. n Reiterating the principles behind the so-called fiscal responsibility bill, but stopping short of announcing a detailed tax plan. n Further complex green tax initiatives but no overarching environmental tax strategy. n Reiteration of the tax hikes already announced in previous budgets and PBRs.

ON 1 DECEMBER 2008, THE GOVERNMENT CUT THE STANDARD RATE OF VAT TO 15 PER CENT AS PART OF ITS PACKAGE TO STIMULATE THE ECONOMY. IN PRACTICE, THE REDUCTION WAS TARGETED AT THE RETAIL CONSUMER, TO GET THEM BACK INTO THE HIGH STREET AND READY TO SPEND AND THE GOVERNMENT WAS RELYING ON THE RETAIL SECTOR TO PASS ON THE SAVING TO STIMULATE THAT SPENDING FOR THE GREATER GOOD OF THE ECONOMY.

UK PLC faces its most challenging fiscal position for many, many years. Spiralling public debt has focused attention on the two levers governments can pull to address the deficit –cuts in spending and increases in taxation.

Hard decisions will need to be made about the best ways to address the scale of the Government’s £175bn fiscal deficit. All the political parties are – or should be – more than aware of this. We believe that the public deserves to be fully engaged in the process of debating the key taxation priorities well before the election is called. The electorate is becoming increasingly alive to the fact that there will be both cuts in public spending and increases in taxation. However, voters need to have a clear idea about the level of pain they

In the last Pre-Budget Report (PBR) before the next General Election, the Chancellor adopted a cautious approach, on the grounds that he did not wish to put recovery at risk. Given the backdrop of a huge Budget deficit, the Chancellor faced difficult decisions on raising taxes and cutting public expenditure. However, no doubt with the pending election in mind, the limited tax-raising measures and spending cuts which he has proposed will not make significant inroads into reducing that deficit. We can therefore

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

BDO Stoy Hayward is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.