Massaging media and the masses

WHEN GORDON Brown introduced the pre-Budget Report when Labour returned to power in 1997 - effectively resurrecting the former Autumn Statement - he produced a useful practical and political tool for himself.

The tradition where the Treasury could explain its intentions and approach had been abolished by his predecessor, the Conservative Ken Clarke, in favour of a combined Budget and economic statement in November.

But under the stated aims of bringing predictability to Government, reducing uncertainty for business and eliminating nasty surprises for the markets, Brown has increasingly used the pre-Budget Report to introduce new and often potentially unpopular policies as well build political capital.

This year he headed off the Tories who were gathering a head of critical steam over the Wanless report into the National Health Service and reaffirmed the Government's commitment to a tax-backed health provider free at the point of delivery rather than one running in tandem with private insurance.

He panned the growing criticism and then announced his £6bn investment into the NHS in the coming year. In previous years major policy changes, such as the introduction of the 10p income tax band, have been dropped into the autumn statement.

A string of leaks to selected members of the Press and media also test the water for the Chancellor before he gets to his feet in the house. This year his assault on red tape for businesses and the widened Corporation Tax reliefs, the move to increase family tax credit and help for pensioners were widely reported in the previous few days.

It had also been reported, inaccurately as it transpired, that the United Kingdon Plc economy is on for the Government's growth target of 2.25% in the coming year. Though this apparently failed to breathe any life into the last hour of stock market trading it will provide succour for the raw nerves of industry.

If all is well, and tax revenues remain healthy, the need for tax rises diminishes. His pronouncements on the state of the economy, in this case good news that the UK currently remains healthier than the rest of the G7 nations, provided a backdrop for his announcements of help for business which have been battered by the terrorist events of 11 September.