Reduction in basic rate tax for 2009?

The pre budget report (or mini budget) as it's also known is due next week. There's been talk of the Chancellor reducing the rate of basic rate tax given the state of the economy. It's worthwhile noting what an event this would be. The rate of basic rate tax has already been reduced to 20% from April this year (before that it was 22%). A further reduction would take the basic rate tax amount sub 20%. This is a very low figure and would make us ultra competitive with many of the low tax countries in the world. It's worthwhile noting though that just the tax rate on its own is pretty irrelevant - it's the tax band that the rate is applied to that also needs to be considered. Providing this was left untouched a further drop in the basic rate band may give a much needed boost to economic confidence. Here's a list of the basic tax rate for all years since 1974. This'll give you some idea of the low rate we've currently got. tax year ended 74 - 30%
75 - 33%
76 - 35%
77 - 35%
78 - 34%
79 - 33%
80 - 86 30%
87 - 29%
88 - 27%
89 - 96 - 25%
97 - 24%
98 - 00 - 23%
01 - 08 - 22%
09 - 20%