Fiscal rules at breaking point

<p>Gordon Brown's budget policy is founded on strict rules about the uses of public debt and its physical limits. So if public spending is to continue to grow at the current rate, tax increases are unavoidable.</p> </p><p> </p><p><p>On Wednesday, Gordon Brown will outline the Pre-Budget Report. Next spring's Budget proper is expected to set the envelope for next summer's Spending Review, which will plan public spending until 2008.</p>