Brown hints at tax cuts to help UK

Tax cuts could be used to push the UK out of recession, Prime Minister Gordon Brown has said, amid mounting speculation they will be included in the upcoming Pre-Budget Report.

Gordon Brown to tell of plans for new world order Gordon Brown to tell of plans for new world order

"What I am determined to do is to get all countries around the world trying to get their economies moving again and one way you can do that is by putting more money into the economy by tax cuts or by public spending rises," he told GMTV. "That's something that we've got to look at in the next few weeks,"

It is the PM's strongest hint yet that Chancellor Alistair Darling will use his autumn mini-Budget, due in the coming weeks, to unveil a package of tax cuts, reported to be worth up to £15 billion and aimed at cutting household bills for families hit by the credit crunch.

Mr Brown spoke out as he answered questions from a young family picked by GMTV to quiz him at 10 Downing Street about his efforts to ease the effects of the downturn.

Later, he will use a high-profile speech in the City of London to call on fellow world leaders to seize the opportunity created by the current worldwide economic crisis to create a "truly global society".

Britain, the US and Europe should join together to provide leadership in the creation of a "stronger and more just international order," he will say, ahead of this weekend's emergency summit of world leaders in Washington.

Mr Brown has made clear he does not want to cut public spending so any tax cuts are likely to have to be funded from borrowing.

The Conservatives have attacked that approach - warning it risked pushing up interest rates and requiring tax rises once the economy recovered. "He's talking about borrowing even more. And what does that mean? The risk of higher interest rates - and mortgage bills - and higher taxes to pay off the debt tomorrow," party leader David Cameron said at the weekend.

The Opposition is expected to announce plans on Tuesday for tax cuts funded from savings in government spending.

No details have been confirmed but reports suggest they will involve scrapping National Insurance payments for new workers to make it easier for employers to take staff on.

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