No give away PBR

Alistair Darling, chancellor

Alistair Darling has played down speculation of a big pre-Budget report give
away tomorrow, warning that Britain is heading for ‘economic turbulence’ while
adding that financial stability would always take precedence over ‘irresponsible
promises on tax’.

The newly installed chancellor of the Exchequer has paved the way for a
neutral public taxing-and-spending package when he presents his first PBR and
the government’s first Comprehensive Spending Review in three years.

He hinted he would cut economic growth forecasts for next year and, possibly,
this year, saying: ‘We are entering a time where there may be some economic
turbulence. We are entering a difficult period, difficult decisions will need to
be taken.’

Speaking on the BBC’s Politics Show, Darling also hinted that there
could be changes to inheritance tax thresholds, following Tory promises to
increase the tax-free inheritance amount to £1m.

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