Did this important Pre-Budget Report provide tax cuts to help families and businesses?
Taxes
The temporary tax benefit of £120 a year for basic rate payers introduced in May will be made permanent and increased to £145 a year in April 2009. This will benefit 22 million basic rate tax payers.
A new tax rate of 45% on income over £150,000 will come into effect from April 2011. This will affect only 1% of the population.
Personal income tax allowances are to be scrapped for those earning more than £140,000 from 2010.
Value Added Tax (VAT)
As expected, VAT will drop from 17.5% to 15% from Monday 1 December until the end of 2009. The concern is that retailers will use this to increase their margins by keeping prices at the same level; however, it seems more likely retailers will do whatever they can to get you into their stores.
The VAT reduction on tobacco, alcohol and petrol is to be offset by increasing duties on these products, meaning they won’t fall in price.
National Insurance (NI)
NI is to rise 0.5% from April 2011 for those earning more than £20,000. Both workers and businesses will pay more.
Economy
In the March 2008 Budget, Chancellor Alistair Darling forecast growth of 1.75%-2.25% for 2008. In light of the economy deteriorating over the autumn, the forecast is now for growth of 0.75% this year.
Of more concern is the forecast for 2009, with GDP growth expected to fall further this quarter and again in the first half of next year. The economy is expected to shrink by between 0.75% and 1.25% in 2009, then to grow between 1.5% and 2% in 2010.
Green taxes
Plans for the owners of polluting cars to pay more are off until 2010, and increases for the worst polluters have been capped at £30.
Public borrowing
In the March Budget, Darling forecast that Public Sector Net Borrowing (PSNB) would fall from £43bn in 2008-09 to £30bn in 2009-10 and further in subsequent years.
However, recent events have forced the Government to change tactics, with borrowing to rise to £78bn this year and £118bn next year – a total of £300bn over five years.
Fiscal stimulus
There will be a £20bn fiscal stimulus between now and April 2010.
This will go on the motorway network, social housing, primary and secondary schools and towards creating fuel-efficient housing.
VAT cut - will it make much difference 
There's a VAT cut expected today, the government are hoping to give the economy a lift.
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