Dear listener

The Egyptian Government is demanding the return of the Rosetta Stone. The Stone contains the same text – largely about tax – in three ancient languages and was the key to translating unintelligible script into intelligible writing. So before the Stone is returned I have used it to translate the ancient Parliamentary language of the Pre Budget Statement into clear English.

Darling: In an unprecedented move, I cut VAT to 15 per cent for a year to put over £11bn into the pockets of consumers and retailers. I can confirm that VAT will return to 17.5 per cent on January 1 as planned.

Rosetta: When I cut VAT I made sure the price of alcohol, tobacco, and petrol did not fall by raising the duty on them. But I won’t be cutting duty when VAT rises so they will be going up on 1 January.

Darling: I can confirm the basic state pension will not be frozen, but will rise by 2.5per cent in April.

Rosetta: In an unprecedented move other parts of the state pension will be frozen leaving some pensioners with a 1% rise.

Darling: I also want to help families receiving other benefits linked to the inflation figures – such as child benefit and some disability benefits. These benefits will rise by 1.5 per cent  in April.

Rosetta: This 1.5% rise will not cost anything as it will be deducted off any rise in April 2011.

Darling: I have decided against any further changes to income tax rates or thresholds next year

Rosetta: All tax allowances will be frozen so any increase in income will be taxed in full and thousands more will pay higher rate tax.

Darling: I have decided to freeze the individual [inheritance tax] allowance at £325,000 for the next year. This will still mean that fewer than 3 per cent of estates will pay inheritance tax.

Rosetta: But rising house prices will push more people into its net.

Darling: we must make sure that we get maximum value for every pound we spend. 

Rosetta: The age at which people qualify for bus passes and free prescriptions will be raised from April 2010 and reach 65 by April 2020.

Darling: A choice between ambition driven by the values of fairness and opportunity, or austerity driven by an out-dated dogma.

Rosetta: Errr, sorry, this sentence remains completely meaningless.

And in your very own Rosetta Stone programme which translates financial jargon into clear English…

We will of course be looking at some of these Pre-Budget stories – in particular the Pensions Minister will be explaining why she is freezing SERPS.

Then we discuss new research which shows the way to make money is to watch when small company directors buy shares in their own business.

Ask why pensions invested in ‘cash funds’ are falling in value when individuals can get 3% or more on their cash savings.

Try to find out why National Savings & Investments has pulled its best value products off the market after just a few weeks.

And look at a flexible mortgage which has suddenly become rather obdurate.

Of course things may change but check what happens on Radio 4 on Saturday at noon, or the repeat Sunday at 9pm, or the website bbc.co.uk/moneybox where you can listen at any time. More than 100,000 listened to Money Box and Money Box Live that way in October.

And at www.bbc.co.uk you can also read stuff, watch videos, follow up items, download transcripts and documents, and send us problems you want us to look into. And of course Have Your Say on this week’s topic – not confirmed yet.

Best wishes,

Paul

PS Don’t forget the programme preview on Breakfast BBC 1 soon after 0845 on Saturday.

e-mail Paul Lewis