Tax policies fair, says Brown

Gordon Brown has described the increases on tax and national insurance as "fair".

He made the comments during a speech about economic recovery, and he believes the policies will successfully balance cutting the deficit and protecting core funding areas.

The prime minister noted that the Budget will focus on "protecting and advancing the recovery".

He also stated that taxpayers will recoup the direct costs that they accrued in bailing out the banking system.

Cutting tax credits for one-and-a-half million middle-class families on modest incomes and reducing inheritance tax does not make any sense, Mr Brown commented.

Britain's small businesses will be encouraged to grow with a number of new initiatives and regulations, he observed, as they try build on the number of successful entrepreneurs in the country since the 1990s.

It was recently suggested by Steve Hughes, economic adviser at the British Chambers of Commerce, that companies need an easier tax system, as it can sometimes hinder development.