Pre-Budget report - Brown should take responsibility for economic problems

4.44.40pm UTC (GMT +0000) Tue 9th Oct 2007

Alistair Darling makes his first major statement as Chancellor at 3.30pm today with the Pre-Budget Report and Comprehensive Spending Review. He is expected to signal inheritance tax changes and plans to target private equity bosses' tax loopholes. Hospitals and schools may get more money than expected, although spending is expected to increase more slowly than over recent years. Mr Darling is likely to downgrade expectations for growth as he outlines his latest thinking on the UK economy. Ming Campbell this morning called on Gordon Brown to take responsibility for the turmoil in the economy, accusing the new Prime Minister of going to ground while his Chancellor tries to steer his way through the stormy economic waters of the Prime Minister's making.

Liberal Democrat Leader Sir Ming Campbell said "Gordon Brown must stand up and take responsibility for creating an economic outlook full of uncertainty and instability. Personal debt now stands at £1.3 trillion and households now have to set aside about a fifth of their income to service existing debt, two fifths for first time buyers. Since Labour came to power the gap between rich and poor has increased and social mobility has declined. We want to see national income tax cut by 4p funded by environmental taxes and taxes on the wealthy. Council tax should be replaced with local tax based on ability to pay. It is time to cut tax for low and middle income groups to make work pay and ensure that the super-rich pay a fair share."