CHANCELLOR Gordon Brown has promised tax cuts in next month's budget for businesses in areas of high unemployment.

The pledge came as Mr Brown joined other ministers and Tony Blair at the Prime Minister's country home, Chequers, on a special Cabinet away day.

On the agenda were public spending and next month's budget. Ministers were using the break to try to get back on track after a month of bad headlines.

With rows over donations from Indian millionaires and rows at the Department of Transport, ministers appeared relieved to be back on the domestic agenda.

But there were reports of splits over Mr Blair's plans to back American military action against Iraq. Also on Friday's agenda was the government's comprehensive spending review, setting out department spending allocations for the next three years.

Mr Brown, speaking ahead of his Budget, promised it would champion small businesses by cutting taxes.

''Most of all, we must do even more in areas of high unemployment, where the way forward is not more Giro cheques but more businesses and economic activity,'' said Mr Brown.

''The Budget will build on our Stamp Duty exemptions for property purchases in disadvantaged areas and the new community investment tax credit will be among measures to cut the cost of starting a business.''

He was telling ministers that helping businesses to create wealth was the surest way of creating a higher standard of living and guaranteeing better public services for everyone.

Tweet