by Calculated Risk on 11/23/2008 11:34:00 AM

From The Telegraph: Pre-Budget report: Gordon Brown defends tax cuts

[Prime Minister Gordon Brown] told BBC1's The Politics Show world leaders agreed the need for an injection of cash into the economy.

"Everybody generally agrees that the fiscal stimulus - and what we mean by fiscal stimulus is real help for businesses and families now - has got to be substantial to have an impact."

The Government is expected to pump between £15 and £20 billion into the economy ... [in addition to changing] the VAT ... from 17.5% to 15%, which would cost £12.5 billion, moves are thought to include further tax cuts targeted at the least well off.
...
There are also suggestions of a new three month grace period for mortgage holders struggling to keep up with their repayments before repossession proceedings kick in.
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But debt is predicted to soar to more than £120 billion, fuelling concerns about the tax rises and spending cuts that may be necessary later.

Mr Brown said: "If you say at the moment that there is nothing that government can do by spending more or investing more at the moment then that is a gospel of despair in the future."