![](https://policyexchange.org.uk/wp-content/uploads/2008/11/will-the-splurge-work-nov-08-scaled.jpg)
November 26, 2008
Will the Splurge work?
Today the Chancellor announced around £20 billion worth of additional borrowing, over and above the near £100 billion the government would have borrowed anyway. This money will be used to fund a reduction in the VAT rate and a number of other small measures. The Government has announced that this additional borrowing will be paid back after the next election by a new 45% top rate of tax for those earning over £150,000 and National Insurance increases of 0.5% for both employers and employees.
Policy Exchange investigates if these measures will work.