Pre-Budget Report

On the help for families, we welcome the VAT cut and the vehicle excise duty changes, but question why on earth the Chancellor wants to put petrol duty up at this time. On the help for businesses, we welcome the flexibility that he has introduced, and the one-year deferral on the small companies corporation tax rate, but notice that there is no change to the standard rate, or to the income tax paid by the smallest businesses that do not pay corporation tax. On direct public investment, although he is borrowing £300 billion over the next three years, he is only bringing forward £3 billion of direct public investment from the 2010-11 Budget. That is not new money; it is simply being brought forward. Will the £3 billion be subject to Barnett consequentials?