British government is likely to speculate GBP 16 billion today
(November 25) on a series of tax cuts to try to kick-start the economy
and fend off the effects of recession following the global financial
turmoil.

In the most important pre-budget statement for many years, British
chancellor, Alistair Darling is likely to slash value added tax (VAT)
from 17.5% to 15% the first time it has ever been reduced.

There will be a clear aim to put more money in families` pockets with
a series of tax-cutting measures to get people spending again.

Darling is expected to target the wealthy with a new top rate of tax
to help pay down soaring government borrowing, as he prepares to
unveil a GBP 12.5 billion VAT cut to encourage Britain to shop its way
out of recession.

The Chancellor will announce plans for a new 45% top tax rate to be
set up about GBP 1.5 million a year, to be introduced after the next
election

B.Karthick
Research Analyst.
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