Salvation now...pain later?

As we await the Autumn Statement, speculation is rife as to the ways in which the planned spending increases and tax cuts will have to be paid for in the future. The BBC reports that the top rate of tax will be increased from 40p to 45p in the pound after the next election for those earning over £150,000 per year. This appears to be a reverse in Labour's policy, reierated in their 2005 General Election manifesto, not to increase the top rate of tax. Also, it highlights differences that are starting to emerge between Labour and the Conservatives over future tax and spending policy; the Conservatives have said they would pay for any increase in government borrowing by scrapping planned rises in expenditure. (Link to BBC for details) and (FT)

The FT has produced a 'checklist' for the Autumn Statement, detailing certain aspects of the economy. (Link)