PM plans pre-Christmas tax giveaway
Gordon Brown is planning a pre-Christmas tax giveaway in a bid to boost the economy and his electoral chances, it has been claimed.
The tax breaks - due to be announced in the Pre-Budget Report on November 24 - will be targeted at low-income groups. They are likely to be distributed via the tax credit or winter fuel payment system, Downing Street sources have indicated.
Previously, the Government was believed to have been considering a "fiscal stimulus" package of tax cuts and £15bn of spending increases.
However, economists are now thought to have advised ministers that double that - equivalent to 2% of the UK's GDP - may be needed to revive economic growth.
Such a move would be bound to attract criticism from the Tories, who have warned that the increased state borrowing needed to fund a cash injection would leave the economy in peril.
Shadow chancellor George Osborne stepped up the attack by suggesting that the Government may spark a run on the pound by trying to raise too much money on international markets.
At a press conference after the G20 summit in Washington, the Prime Minister branded his comments "irresponsible".
Mr Brown said he "regretted" the "partisan talk from the Opposition", insisting: "At a time when nations are coming together all over the world to deal with these problems, I think people are looking to politicians to be responsible and show leadership."
He added that he expected countries around the world to come forward with similar financial stimulus packages over the next few weeks.
