Pre-Budget report date set

Analysts say Brown's growth forecasts are too optimistic

The pre-Budget report is to take place on Wednesday 10 December, Chancellor Gordon Brown has told MPs.

This year's statement from Mr Brown on the UK's economic performance and his tax plans is later than normal.

It will take place in the House of Commons and sees the chancellor set out his thinking for next year's Budget.

It has been moved to December this year because a backlog of current government bills has pushed back the Queen's Speech to the end of November.

The 2002 pre-Budget report was on 27 November, but it has normally been held in the second week of November.

The later timing this year may well suit Mr Brown, who has recently returned to work after paternity leave following the birth of his son John.

Higher tax plans?

The pre-Budget report is held each year because governments are required to produce forecasts for the economy and the public finances twice a year.

Forecasts are published in the Budget statement each Spring. The other forecasts come six months earlier, normally November, and are now known as the pre-Budget report.

The timing for the Budget and pre-Budget were introduced by Mr Brown when he became chancellor in 1997, with the pre-Budget report intended to spark debate about proposals being considered in the following budget.

Commentators predict that there will have to be a slight drop in the chancellor's forecast of UK economic growth.

If that was to happen the public finances would suffer and the level of government borrowing would have to rise.

As a result of these predictions speculation is already under way about taxes being increased to ensure government spending plans do not have to be abandoned.

Various government reviews - on housing, child poverty, regional pay and the location and efficiency of the civil service - are due to report soon, and might be published as part of the pre-Budget report.