Liberal Democrat Treasury spokesman Vince Cable who was once labelled a doom-monger for predicting the credit crunch has suggested that a cut in income tax not a reduction in VAT is what is needed to stimulate the economy.

This way jobs would be safer, people would have more secure incomes, and would therefore be more willing to spend. Perhaps employers would even take on more staff.Small businesses need our support at times like this. Instead employees NI has risen, doing exactly the opposite.

We pay reduced VAT on electricity and gas and the reduced rate is not affected by the cut. These utilities are necessities, especially in winter. Cuts should be placed on these to alleviate suffering not on luxury goods that we are not buying anyway.

We can no longer afford to host such an expensive event with the current state of our economy. It is time to be selfish and spend the money on helping our own citizens not hosting other countries' athletes and world press.

The housing market needs a hand and the last stamp duty change had little effect. If we could reduce stamp duty further or even abolish it completely especially for first time buyers, at least for a short to medium term period, we might be able to kick start the market. Alternatively stamp duty could be levvied on sellers but not buyers. That way the government does not lose out on the revenue but the buyer has an easier time.

Some sort of tax free saving scheme, similar to ISA's but aimed specifically at saving for property investment, could also have been a beneficial move according to the Association of Mortgage Intermediaries.

Jon Cruddas, Labour MP for Barking & Dagenham said before the PBR was announced ''Any stimulus must be clear-cut and dramatic. One such initiative would be a cash return to all taxpayers. I would send everyone who pays the basic tax rate - 27 million people - a £500 cheque. That would cost 0.9% of GDP, some £13.5bn. Gordon Brown should personally sign the cheque and have it sent to everyone within weeks.''