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How will Alistair Darling dress up the economy next week?

On the eve of what is sure to be Alistair Darling's most important political statement there is speculation and counter speculation about how he will address the situation of the UK economy next week. His pre-budget report is sure to include a number of tax incentives to the UK public as well as talk that the rescue package and financial assistance given to the money markets are starting to work. But will this be enough?

The UK stock market is looking for a reason to look forward to the future as currently it appears to be doom and gloom on the high street and in industry in general. The rumoured friction between Gordon Brown and Alistair Darling with regards to the level of tax cuts to be announced seems to be abating and there is speculation that an agreement has been reached.

Next week will be a very difficult balancing act for the government who will need to find a reason to look to the future as well as commenting upon what is in effect a recession in the UK. Staying upbeat while being realistic is an art form which very few have been able to master.

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