VAT rise ruled out as part of pre-Budget report

alistair darling

Accountancy Age readers believe the Chancellor will not press ahead
with a rise to the standard rate of VAT in the pre-Budget report on 24 November.

Some 62% of respondents to a poll on our website said there is ‘no way’
Alistair Darling will propose an increase.

A VAT rate rise had been expected but, in the last few days, moves to cut
taxes as a fiscal stimulus have taken precedence over revenue-raising measures
in political discussion.

Some 22% of respondents to the poll thought the prospect of a VAT rate rise
is still a consideration in
the short-term. A total of 10% felt Darling was likely to raise VAT by more than
1%, with a mere 6% believing it would rise by less than 1%.

The November PBR will be the first since 2002.

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