On Thursday, Alistair Darling will deliver the PBR, which will draw the battle lines for next year's election and give an insight into how the government intends to tackle the UK's substantial public debt.
For the second year running, the PBR, usually a low-key opportunity to tweak measures announced in the main budget, will be a far-reaching, policy-heavy ‘mini-budget', as the government seeks to address ballooning levels of debt without derailing the recovery.
With record annual borrowings in excess of £175bn, the government has smashed its 40% debt-to-GDP target.
However, while the Tories have said that debt reduction is the priority, Labour believes that tax increases must be delayed until the recovery is well under way.
Paul Holohan, chief executive of Richmond Capital Partners, said that "actually doing something about red tape" must be a priority.
"Red tape has got out of all proportion and has created a legal minefield with many print bosses at breaking point."
He also urged the government to develop a new instrument for funding working capital, suggesting a "structured cashflow loan" that would offer stability to firms that have fluctuation in this area.
However, he acknowledged that the government was likely to increase taxes, possibly including national insurance.
"I expect Darling to say he is going to support SMEs, while in practice doing little," he said.
Meanwhile, Marcus Clifford of BPIF McInnes Corporate Finance called on the chancellor to "reduce compliance and legislation and not increase the tax burden".
He said that businesses will be expecting tangible support from the government and that they must be seen as "the engines of recovery".
He added that the government could legislate to legally ensure payment within a defined period.
Printweek.com will be running a live forum on the Pre-Budget Report, beginning at 12:15pm on 9 December.
PBR possibilities
- Increasing capital gains tax to 25%
- Follow Tory calls for corporation tax reduction to 25%
- Growth forecast for next year of 1-1.5% to be maintained
- Darling will want to avoid negative headlines about tax increases, while increasing public revenues
