Pre-Budget Report prediction from expert economist

Roger Bootle, economic advisor to Deloitte, expects the Pre-Budget Report (PBR) to be a double-edged affair, with measures to provide short-term support for the economy accompanied by plans to bring public borrowing down more quickly further ahead. He suspects that Mr Darling will attempt to balance the various considerations by unveiling a package designed to "go for growth" over the next year or so, accompanied by medium-term measures to put the public finances back into a more sustainable position. Near term support for the economy may come from the further bringing forward of capital spending from future years, as well as temporary tax cuts aimed at the housing and labour markets. Measures to improve the fiscal position further ahead may incorporate further rises in VAT and capital gains tax, and much deeper cuts in public spending. Of course, the Chancellor will clearly have one eye on next year's general election.