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Fittingly, Chancellor Gordon Brown detailed the Government's achievements over the last decade by delivering his shortest pre-Budget speech in a decade. At 37 minutes, Brown's ramblings were long on self congratulation, short on content. Yet this was Gordon's way of telling the nation why he remains (d)electable. The electorate may well have other ideas when it gets its opportunity, of course.
It was, as usual, a case of fighting one's way through the statistical guff about how wonderful the UK economy is supposedly doing. And not forgetting as well the populist yet ultimately meaningless platitudes about educating the nation's children so that Britain can punch above its weight in the global economy.
MPs were told that the British economy is expanding faster than expected - Brown revising his 2006 forecast upwards to 2.75%, from last year's Budget predictions of 2-2.5%. And he forecast growth next year of 2.75% to 3.25%.
On the deficit side of the equation Brown said the government would borrow an extra £7 billion through April 2011. The deficit meanwhile will hit £37 billion in the current fiscal year, £31 billion in 2008 and then reduce to £22 billion in fiscal 2011. As a percentage of GDP, the Treasury is forecasting the gap to nearly halve from 2.3% this year to 1.3% in 2011.
Getting down to the nitty gritty, Brown announced that in April, benefit payments for the poorest children will rise to £64 a week. And every mother will get additional child benefit in the last months of pregnancy from April 2009.
The basic state pension is to rise by 3.6% in April, while the pension credit minimum guarantee will increase to £5 for single people, £7.65 for couples.
Fuel duty will go up from Thursday by 1.25p a litre. However, the fuel duty escalator will not be restored. From February, air passenger duty will rise from £5 to £10 for most flights.
Tax discounts for biofuels will be extended.
Elsewhere, Brown said that within 10 years, every new home will have to be zero-carbon. And for a limited time, the vast majority of new zero-carbon homes will be exempted from stamp duty. A further 300,000 households are to be offered free insulation and free central heating.
Meanwhile, planning decisions on major infrastructure projects are to be made by an independent planning body.
Hopes on the part of the environment lobby for hikes in green taxes beyond the obvious targets, such as hapless air pasengers, were dashed however - the Chancellor arguing that the international community needed to act through joint initiatives such as carbon trading.
But in his rebuttal of Mr Brown's speech, Shadow Chancellor, George Osborne (who sounds uncannily like the 'Piers' character from the 'New Statesman' TV show), said it was unfair for people to claim Mr Brown had only recently nailed his colours to the green mast. In fact, Gordon had been green all along - ever since his infamous meeting at the 'Granita' restaurant in Islington in fact, where he and Tony Blair allegedly concocted 'that deal' for the future PM's job. Osborne wryly noted that the restaurant has since changed its name to 'Desperados'.
Desperados could almost be made into a film. And from next year it'll be cheaper to do so when new tax reliefs for the film industry come into operation.
06 December 2006 © Moneyextra.com
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