GORDON BROWN is expected to warn union bosses at the TUC congress in Brighton today that the governm...
GORDON BROWN is expected to warn union bosses at the TUC congress in Brighton today that the government will resist inflation-busting pay demands and carry on with public services reform, writes the Daily Telegraph.
It is anticipated that the Chancellor is to argue that his way of handling the economy has by and large protected the UK economy from the recessionary pressures facing many other countries.
He will also point out that the government remains determined that nothing should be permitted to threaten that economic stability.
When it comes to the public sector's finances, Brown will point out that the government is to continue to play the main part, writes the paper, despite ongoing union discontent over issues such as private sector involvement in the public services, employment rights and the crisis in pension funds.
WHILE BROWN is to speak about the UK economy today, optimism over a broadly based economic recovery was aired after figures released showed a revival in manufacturing that outdid expectations alongside another cheerful month on the high street.
The Times reports that hopes of an end to the economic misery were high yesterday as manufacturing output rose for the second consecutive month in July and increased at its fastest pace for eight months.
Boosting retail sales during last month as well as the stronger than anticipated pick-up in industry have also given birth to new speculations that interest rates may rise before the end of 2003.
Overall, figures from the National Institute of Economic and Social Research show that growth in the UK economy speeded to 0.8% in the three months to August.
Central bankers from the Group of Ten meeting in Basle also said they had a growing confidence in the UK economy.
ALSO REPORTED by the Times is that the Inland Revenue yesterday took action to close a loophole in its legislation that could have given hundreds of international companies to rights to reclaim billions of pounds in overpaid taxes.
This amendment to the Finance Act will prohibit companies from using a recent High Court ruling - where Deutsche Morgan Grenfell won the right to seek a refund of tax payments made to its German parent ten years ago - that enables claims for overpaid taxes to be backdated for up 30 years.
From now on, however, the Revenue will not consider claims for tax refunds extending back more than six years. And while the new legislation won't be introduced until next year, will take effect immediately.
This new legislation will make it difficult for about 170 multinational companies that are pursuing similar refunds running into billions of pounds.
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