Gordon Browns Pre-budget report increases petrol by 1.25 a litre
Economics / Strategic News Dec 06, 2006 - 11:20 PM GMTBy: Sarah_Jones
Gordon Brown presented his last pre-budget report before he is destined to takeover from Tony Blair as the next Prime Minister of the UK.
He pledged increased expenditure on education and defense. Brown also reiterated that Britain had enjoyed the longest post-war period of continuous growth, now sustaining a record 38 quarters. Ten years ago Britain was 7th in the Group of Seven, bottom of the league for national income per head. In the last two years, Britain has been second only to the USA," he said. Brown also raised UK's growth forecast to 2.75 percent for 2006 and 3.25 percent for 2007.
Other key points :
- Petrol to rise by 1.25p litre's immediately.
- Inflation was still on target to reach 2% by 2008
- Air passenger tax to double to £10 in Feb. 08.
- That the UK would meet its fiscal target of government debt not exceeding 40% of GDP
- Increase in government borrowing this year to $37 billions, and 31 billion in 2007.
- Education spending of £36 billion over the next 4 years
- ISA's to be made permanent, though no increase in annual limit of £7k
The effect of the announcements is a tax rise of some £2 billions, and the growth forecasts given the slowdown in the USA look ambitious. The rise in petrol duty as a green tax, is unlikely to have much effect on mileage reduction.
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