London – Described variously as a “mini-Budget”, “emergency Budget” and “economic recovery plan”, this year’s pre-Budget report was vastly different from its predecessors.
It claimed to be a report of “action”, announcing a £20bn “fiscal stimulus” and “substantial fiscal loosening”. Indeed, the Chancellor described it as the Government’s opportunity to show how it was acting to ensure that “the economic slowdown will be shallower and shorter than would have been the case”. It included immediate tax cuts and an expansion of public spending aimed at providing a significant boost to the economy. Such bold political and financial measures fed into speculation that this year’s report was “essentially an emergency mini-Budget”.
Chris Rumfitt, Director, Edelman, said: “The 2008 PBR will be looked back on as one of the key political events of the era. The dividing lines between the major parties are now clearer than they have been since the early nineties. The outcome of the next general election, and more importantly the future prosperity of the country, will depend upon the success or otherwise of the Chancellor’s bold announcements.”
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For more information on the 2008 pre-Budget report, Edelman has produced an on-the-day analysis outlining the main announcements made, their context, and key stakeholder groups’ reactions to them.