As it's the Pre-Budget report on Monday and many people are wondering what new fiddle the Prime minister and his Chancellor will come up with I thought I would do a post where people could post what they think he will do. As is well accepted and known, and tax cust on Monday will be deferred tax rises for the future paid out of borrowing. The thing is, I don't think either of them are going to be that headline grabbingly bold with the tax cuts they choose.
Brown is convinced, as are most Labour supporters, that tax credits are the greatest and best way to get money to "hard working families" so here is my prediction. They're going to propose changes to the tax credit system. The changes will be such that they will be able to stand up and say that the "avergage family will gain X poounds per week" thanks to their generosity, prudence, fiscal genius etc etc.
Meanwhile, the truth will be that hardly anyone entitled to tax credits takes them already because they don't want to spend the time filling in a ten page form with a 70 page booklets telling them how to do it. The result will be that Brown will be able to claim to have "cut" taxes for people by giving them extra-credit money back, whilst being fully aware that people avoid his system like the plague. The knock on of this is that he has more money to throw and waste at other things.
Any other suggestions for what they might do to in an attempt to con us?