Supertax planned for top earners in UK
Today the UK government is set to deliver its pre-budget report, and the eyes of the world will be watching. It is thought that Gordon Brown's government will announce major changes to battle the economic crisis. One aspect of the report will reportedly be a new tax rate of 45% for people making over 150,000 pounds per year.
It is thought that the Chancellor will unveil plans for a new 45 per cent tax rate for those earning more than £150,000 a year. However, the new rate would not be introduced until 2011 - after the next general election - meaning voters would have to endorse Gordon Brown to see it implemented.
The announcement is set to come alongside a £16billion package of tax cuts, as Mr Darling attempts to boost the British economy and prevent a prolonged recession.
The range of measures designed to reinvigorate the economy is expected to include a cut in VAT to 15 per cent, in an attempt to keep shoppers spending as Christmas approaches.
However, Mr Darling and Gordon Brown will be forced to admit that in order to pay for the package, Government borrowing is set to move to an unprecedented £117billion within the next two years.