Pre-Budget report: Where should the money go?

Chancellor Gordon Brown delivers his economic forecast and preview of some of the key measures in next year's Budget to Parliament on Wednesday.

The Chancellor has more to worry about than usual with the world and UK economy both slowing down.

Firefighters and other public sector workers are asking for higher pay. And the Chancellor's tax increases to pay for better public services may not deliver enough cash.

Also with security now high on the agenda, the government may have to increase spending on counter terrorism initiatives.

Do you think the economy is getting weaker or stronger? How secure do you feel in the current economic climate? What measures could the Chancellor take to help your business? What measures should be scrapped?

This Talking Point is now closed. Read a selection of your comments below.

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What money there is must be used very wisely

Steve, UK

The idea that taxing the rich is going to solve all our problems is hugely attractive but very naive. The Tories spent 18 years trying to reduce taxes, but only succeeded in doing so for the very rich and shifted the burden from income tax to NI and indirect taxes for the rest of us. The reason why is quite simple: the vast majority of income tax collected is paid by ordinary tax payers, and any reductions are incredibly expensive. What money there is must be used very wisely.
Steve, UK

How about taxing aviation fuel just like petrol, diesel and heavy fuels? This will help revenue and cancel the ridiculous "need" for airport expansion.
C. Thompson, London

If you want to see the effect of high taxation and red tape, look at the German economy now, it's a mess.
Michael Thomas, London

A pay cut for ministers which should go back into the public. Many MPs already earn enough from consultancy roles and other incomes.
Matthew G, Paris

Good money is being thrown after bad

Liz

There should be more money invested in the country. How is the public transport system to be improved if the trains and lines are broken? How can we cut waiting lists for hospital beds without paying to train more doctors and building more hospitals? Currently good money is being thrown after bad in an attempt for a quick fix
Liz

Could we just postpone the war with Iraq? That would save us some money. In the meantime how about our Gordon buys himself a decent calculator?
Brian, Edinburgh

Without industry the economy does not work. Unless something is done to increase our industry/production you cannot have a health service, police and armed forces etc.
Neil, Middleham

The money should come from increased taxes

Nick Toye, Bath

As a father of 3 small children, I think the Chancellor should increase child benefit and the child tax credit. The money should come from increased taxes on those without children and the rich. And no I am not joking, just entering into the me-me-me spirit so prevalent on this site.
Nick Toye, Bath

I've lived in the Netherlands for the last four years and the public services are vastly superior to those of Britain's. However the tax here is very high in order to pay for those services. If Britain wants to have the same level of public services as those enjoyed by the continentals then taxes would have to rise considerably in order to pay for those services.
David Lockwood, Boxtel

I have to agree that the Government should be audited and forced to improve all sectors efficiency by removing red tape, bureaucracy and weeding out the hangers on. As a former civil servant I know that the working life is very easy but this compensates for the low salary. Cut out the excess and increase salaries for the rest.
Niall, Edinburgh

How are these individuals going to be encouraged to save for the future?

Sajid Mahmood, Birmingham

With graduates leaving university thousands of pounds in debt and the continuing cost of property increasing how are these individuals going to be encouraged to save for the future when money problems/debt are high on their list?
Sajid Mahmood, Birmingham

Even though I am not a Labour supporter, I do have to offer Mr Brown my sympathy on giving what will be a very taxing (excuse the pun) speech. With the current climate of public sector unrest, he is certain to get hefty criticism from those areas if he does not direct some cash to them. Mr Brown needs to evenly distribute the current taxes and efficiently make cuts where necessary. A big job!!
Shaun Dawson, London

Where should WHOSE money go? I get the feeling that Gordon thinks it's all his.
Steve, Botley, Hampshire

A number of your correspondents say that if we increase the higher rates of tax on people such as company directors, they will leave the country. Good riddance!! I don't want people whose primary motivation is making money, running businesses and the country. There are plenty of people, whose motivation is more one of public service; philanthropy; or just the satisfaction of doing a good job.
Peter Judge, Brighouse

As a middle-class, childless, 50 year old graduate, who is earning only 20k after some 20 years in my profession, I have absolutely no doubt that yet again my taxes will rise. Well, why not? My pension is now practically worthless, I work in the white-collar side of the public sector that never receives a pay rise, so why not just do what you've done every year, and make my salary worth even less than it is at the moment?
Jayne

Whatever he decides will probably work out for the best

Marc Michael, London

The Chancellor should revise his spending plans for the NHS. As a nation we can only afford to spend the money that we make. To raise taxes or borrow the money would be irresponsible, betraying Labour's successful policy of fiscal discipline and prudent, purposeful spending. Labour spent two dour years reducing the deficit when it came to power, let's not throw that away now because of an economic downturn. Ultimately however I trust Gordon Brown, he knows his stuff, and whatever he decides will probably work out for the best.
Marc Michael, London

He should immediately halve all benefits, tax credits, subsidies and allowances which do nothing but encourage irresponsible "somebody else can pay" attitudes. The money saved should go towards reducing the top rate of tax, benefiting and rewarding hard working persons such as myself.
Neil, London

How sad that the politics of envy is so alive and well! Contrary to popular belief, there are not enough "rich" to go around and even if a 90% top band were to be introduced the additional revenue would be minimal.
Brian W, Chelmsford, UK

Personally I think we should all stop paying taxes - we should pay private companies to provide the local services that we actually require/ use. I don't want a good public transport system - I would prefer to pay a road usage toll which sees the building of better roads. I would rather pay my GP to see me when I'm ill, instead of waiting 10 days for an appointment etc. The public services are a joke - there are too many administrators and too few workers - we need to see better value for money!
Carol, Essex

Taxation is a balancing act

John, England

I'm a business owner who makes a very comfortable living, so I feel well qualified to comment on the "Higher taxes for higher earners" argument. I would have no objection to paying a higher rate of tax, say 50%, on part of my earnings. However, if the tax rates went up to the punitive levels suggested by some, I would simply close down my "knowledge based" business (causing a significant number of job losses) and move it to some other part of the world. Taxation is a balancing act, and it helps no-one if you over-tax wealth generators.
John, England

Improving the feeling of security of the people by sorting out the pensions fiasco created by the private sector's robber barons.
Mike, UK

Raise taxes? No point - that will just fund MPs' marvellous pension scheme, salary and generous perquisites. I would really like to see a firm of independent auditors appointed to audit the Government - just to find out where all the money really goes!
Gordon Sinclair, England

In many European countries the tax burden is more appropriate to earnings

Andy, UK

The biggest hangover from the Tory years is that so many wealthy individuals have got used to being taxed at such a low rate. Gordon Brown needs to address this issue if he wants to increase public spending to levels required to really deliver. In many European countries the tax burden is more appropriate to earnings.
Andy, UK

It is quite obvious what is going to happen. Those on the left will keep screaming for more money to be stolen from the Middle classes and the 'rich' to improve public services. The Government will do this and the money won't go into public services but into the creation of more quangos and pointless tiers of administration. What a complete farce.
Darren, England

How about relooking at proposals like using the land around the Millennium Dome to build affordable houses for public sector houses?
C. Thompson, London

Nick from England has the right idea. It's all very well saying "tax the rich", but the "rich" are the most mobile. If taxes go to 80%, as some would clearly like, those caught in the trap would simply move abroad, leaving the treasury with 80% of nothing, instead of 40% of a lot. Brown should be looking at ways of improving government efficiency instead of how to raise more money to throw into a big hole.
John B, UK

These idiots who keep saying there should be a 50% tax rate on salaries over £100k. Do you not realise that the people who earn this will just use clever accountants to get their money in ways that mean they don't pay tax? If you're earning £5m per year you're not going to pay £2.5m to the treasury.
Nick, England

It would also help British businesses compete

George, UK

Incentives should be provided to encourage businesses to move from London and the south east to elsewhere in the country. This would stop runaway house prices and take some load away from some of the busiest parts of the UK transport infrastructure. It would also help British businesses compete as costs are so much lower outside the capital.
George, UK

The Government should start to reverse some of the millions of pounds in tax cuts that the wealthiest 10% of the nation enjoyed during the Tory years. Then we could start to properly reward public sector workers like nurses, teachers and fire fighters for the selfless dedication and hard work we have seen from them for the last thirty years.
Kate, UK

He should carry on doing what he does: Increase public spending to replace the demand caused by an over-debt-ridden shopping population suddenly finding out the reality is not ever-increasing house prices and that wealth has to be earned. He's been prudent, salting the cash away. Now he can and will spend it and keep Britain out of a deep recession. It's called Keynesism - not a dirty word.
Randy, UK

Close up the loopholes and tax avoidance scams

Andy, UK

I gather that £5m per annum is now the "going rate" for a FTSE 100 director. The Chancellor should stop being so timid and re-introduce a top rate tax tier starting at 50% or more for incomes over £100,000 per annum. The current levels of boardroom excess are disgusting and should not be tolerated in a democratic society. Close up the loopholes and tax avoidance scams and start getting the boardroom fat cats to pay their fair share. Use the money to fund public services. Who knows we may even start to see some pay restraint in the Boardroom.
Andy, UK

Gordon Brown needs to be more open with us about his true intentions. He is very good at sitting on the sidelines and watching the fray, as if he has nothing to do with it. He urges us to save for retirement, but has directly attacked pensions through his fiscal policy. He has benefited substantially from the legacy of a strong economy, and now that it is all beginning to look a little fragile, he is starting to point to the wider geographical environment as the real driver.
Tony, UK

Mr Brown and the rest of the government need to start living in the real world. If they can manage to fund a totally undeserving pay increase of 40% for themselves, the least they can do is fund a decent pay increase for the fire service and other deserving public service workers.
Kim, Scotland

I take issue with the apparent opinion that 'middle earners' have some debt to society where they not only find themselves having to 'pay their own way' (e.g. student fees) but are also being taxed heavier. What's the point in having a good income for a responsible job if you're left with nothing at then end of the month?
GD, Wales

Gordon has left us all with student debts, paying higher taxes, paying for PFI for at least the next 30 years, possibly retiring at 70 and then in poverty and having our homes seized by the state when we die due to the low inheritance tax threshold. Blair should stop wasting our taxes on stupid advertising campaigns and advertise for a replacement government.
Sam Wright, UK

He should increase the ridiculously low old age pension and make up the difference caused by the changes made by Thatcher. The unemployment benefit should be increased and the red tape reduced. All tax allowances should be removed, resulting in a clean sheet where everyone pays a fixed percentage of their income with no possibility of avoiding it. The over compicated tax laws only benefit the rich. Finally payments like child benefit and maternity benefit should only be paid to those on low incomes.
ian hill, (UK)

Most of the tax spent by government is wasted and pointless

John, UK

Most of the tax spent by government is wasted and pointless. Set the people free and remove government interference from everywhere except the armed forces, police, customs, security services and the diplomatic corps. Turn the rest over to the private sector and the initiative of the population. The talented of the country will rise to the top, the talented of the world will beat a path to our country because of very low tax and very high personal freedom and the dependency culture will mysteriously disappear.
John, UK

I am over 30, have a degree, and grown children! If they are unemployed, they can get all the help they need, even funds to open a new business. I have the responsibility of running the house and paying the bills, while keeping two of them at university, yet I can't even get help with a stamp! He must address this gap! For you cynics out there, my income is minus £90 per month before I buy a loaf of bread and I have chased hundreds of jobs. Sometimes buying the stamps is impossible!
Eileen, UK

How about spending the money on some people who could actually do a good job of running the country and use them to replace the government?
Adam, UK

Gordon Brown should be putting up taxes to pay for good quality public services. The people of this country appear to expect top quality public services but also expect not to pay for them. I find this attitude amazing. People don't expect to buy a Rolls Royce car for the price of a Skoda. So why do they expect Rolls Royce public services?
Jeff, UK

The government must stand firm on public sector pay. If it doesn't then who will be next? Teachers? Dustman? Tube drivers (yet again)? The money coming out of our pockets to pay for reforms and improvements in the public sector will just melt away and we will be back to the bad old days of the 1970s.
Ian, UK

It is vitally important that the chancellor reduces the taxation burden on everyone

Cyril Parsons, England

It is vitally important that the chancellor reduces the taxation burden on everyone, business and individuals. This will help the economy avoid recession. The public sector needs drastic reform to give individuals choice and control of how their hard earned money is spent. I work in the Public Sector and am only too aware of how utterly wasteful it has become. Come on Gordon, never mind the unions, the rest of us would love to see you tackle this problem. Particularly if this led to lower taxation for everyone.
Cyril Parsons, England

Where should the money go? I don't know, but I know very well where it will be coming from and that's the middle classes, again!
Martin, UK

How about targeting childless workers? After all, you have up until now so why make next year's budget any different?
Kenny, UK

Standard rate income tax up to about 28%, higher rate income tax up to about 50%, and then stop messing about and actually start funding and improving public services, not just transport, although that is a prime concern. Until someone admits that you can't have something for nothing we will never make any improvements in this country.
Simon Moore, UK

Gordon Brown should be slashing business taxes and red tape to attract investment

Laura, UK

Given the state of the international economy, what Gordon Brown should be doing is slashing business taxes and red tape to attract investment, protect small firms and avoid unemployment. What Gordon Brown will be doing is another matter entirely - probably taking as much money as he can get so that he can generously give it back in the form of unemployment benefit in a few months.
Laura, UK

In periods of reduced revenue, companies look to ways of reducing inefficiency and cutting costs whilst still maintaining service to their customers. It is well past the time when the government did this. So much money is wasted by the government and it always looks to increase taxes to cover their own bureaucratic inefficiency.
Simon, UK

The chancellor should be cutting taxes to stimulate demand and introduce measures to stop people racking up more and more debt.
Tom, UK