KPMG forecasts upbeat Budget

KPMG predicts that the chancellor Gordon Brown’s upcoming pre-Budget report in December will be an upbeat statement.

Andrew Smith, chief economist at KPMG, says: “This year’s pre-Budget report is billed as being more about the long-term than the short-term. The issue is what happens in the next cycle. On current plans, the books will be balanced by constraining spending growth to below the growth rate of the economy.”