Gordon Brown -
The Pre-Budget Report 2005
In his pre-Budget report, Chancellor Gordon Brown is expected to recognise that the UK economy is decelerating.
Brown originally predicted a growth figure between 3 and 3.5 per cent, but has now admitted that a number closer to 2 per cent would be more reasonable. However, independent analysts believe the UK economy will increase by just 1.8 per cent.
Gordon Brown is believed to use his pre-Budget report to be set out measures increasing the number of new homes being built and also schemes to aid first time buyers.
These include plans which will encourage home ownership and a toll on landowners who have land with planning permission, encouraging them to sell their land in order to help new homes development.
Brown is also expected to reveal a plan that would allow first-time homebuyers an opportunity to own a three quarter share in their property, with mortgage lenders and the government obtaining the remainder.
Elsewhere, the Institute of Directors are calling for a reduction in public spending, arguing that the government are living beyond their means.
The IOD announced that the growth in public spending should be restricted to 1.5 per cent a year until 2011.
Date: 05.12.05
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