Pre-budget report

The Shadow Chancellor (George Osbourne) just sat down after giving his response to the Chancellor's budget. The highlights of Darling's budget:
Economy has done significantly worse this year than expected - contracted by 4.75% rather than the 3.5% expected.
A raft of tax changes - an increase in National Insurance tax by 0.5%, a 50% levy on bank bonuses over 25,000 pounds, threshold for high tax rate is frozen (rather than increasing due to inflation) at 43,000 pounds - meaning more people will be in the higher bracket.
Public pay increases capped at 1% for two years
Deferred the increase of corporation tax for small business
Cutting the corporation tax to 10% for those companies who can prove they are using a British patent
Increase in pension by 2.5%
Child and disability benefit increased by 1.5%
Inheritance tax allowance frozen (a big political move to hit the Conservative position on inheritance tax)

The Chancellor has identified approximately 5 billion pounds worth of savings in the economy. That is about a sixth of the savings that he claims will be made. There are obviously a lot of dreadful spending cuts still to be announced...

Although he is trying to ringfence money for hospitals, schools and police (although note that he is not ringfencing the money for Education, Health or the Home Office!), there will be savage cuts to many government departments (more so to those he isn't ringfencing). According to the BBC, the cuts that will be made will undo 3/4 of the increases in spending that has occurred since 1997.

George Obsourne came straight back on the attack in his speech, calling it a total failure and a political budget (who'd have thought?). A very good, robust speech.