WILL Chancellor Gordon Brown play his cards close to his chest at such a politically sensitive time?

With no date set for the pre-budget report, the usual speculation is rife in the corridors of the financial institutions, according to Barry Potter, Basingstoke partner at chartered accountants HW.

He does not predict any major tax changes in this pre-budget report, particularly in light of recent criticisms of HM Revenue and Customs for not holding proper consultations prior to introducing major changes to tax legislation.

Mr Potter said: "Consultations would avoid any immediate tax rises, address the criticisms being made over the present consultation process and at the same time still be seen as making a move in the right direction.

"In addition, this would avoid the associated political consequences that tax rises typically bring."

He also predicts moves could be made towards harmonising National Insurance and Income Tax rules to help streamline the taxation system.

"This is positioned as helping the businessman, but is also another way of increasing the tax take.

"Green taxes" are top of the Government's agenda following the recent report compiled by Sir Nicholas Stern on the economics of climate change. There is much speculation that they will attack the "gas guzzlers", perhaps even introduce a pay-per-mile pollution tax, and increase the current level of tax on flights.

Mr Potter added: "Despite the Government saying that these proposed taxes are not there to fundamentally raise revenue, I can imagine they will be met by a degree of cynicism.

"However, it is now seen as acceptable to pay financial penalties to protect an environment that future generations can enjoy."

Mr Potter also predicts further changes to toughen up on the application of legislation, where previously there has been some relaxation of the rules.