Pre-Budget Report

I made it clear that we will of course review the position, as we would from Budget to Budget, but I have also made it clear that having put in place this fiscal stimulus—and recognising that tax revenues are likely to be affected for some time, especially because of what has happened to the financial services industry— we have to be prepared to raise revenue to ensure that we have sustainable public finances in the long term. I am prepared to take those decisions. There were two parts to what I announced today, as I have been making clear for some time: helping the economy, but also ensuring that we live within our means in the medium term.