So what should Darling do today?

Alistair Darling has to ensure that Britain makes it out of recession while tackling the deficit, and helping Labour to win a fourth term. So what is our diverse jury of experts hoping for from the pre-Budget report?

Jon Moulton, Chairman, Better Capital

The first thing I would like to see in today's pre-Budget report is Alistair Darling's resignation.

As for the other things he might announce, I am more fearful than hopeful.

If there was a Churchillian-style plan to rapidly and radically cut the country's budget deficit and debt, then that would be welcome – but frankly I don't think we're going to see any measures that will alter anything other than the opinion polls.

I expect to see a series of short-term, peripheral measures that will be very hard to judge over the next five years, and by that time the current government will have been thrown out of office anyway by the voters.

What we need instead is a radical plan that will involve a lot of short-term pain, but will see us get through the crisis within a shorter period of time: the Government needs to haul back its spending and its borrowing and needs to encourage more consumer spending to rescue the economy.

I think there is an important moral point to make here, too. With all the debt we in this country have got, we are consuming future production – and that is unfair on generations to come.

Brendan Barber, General secretary, Trades Union Congress

The TUC does recognise that while long-term public debt is not a serious cause for concern, the collapse in tax revenues brought about by the financial crisis and recession has created a rapidly rising annual deficit which is not sustainable or desirable in the longer term.

The TUC rejects the notion that this is a national emergency requiring an urgent response. However, it is vital that government identifies measures to reduce the deficit over the medium to long term. At the heart of such a strategy will be restoring economic growth and thus reviving tax revenues, but we also believe other measures have a key role to play.

There are tax options which could play a key role in deficit reduction. Not all of these options require implementation, but they do show the sorts of choices available, such as a major financial transaction tax (£30bn). The tax due on a transaction of £100,000 would be just £55. Other options are a general anti-avoidance principle (£1bn); a tax relief cap (£10bn); an empty property tax (£5bn); collecting tax by improving HMRC resources (£20bn); and abolishing the Non-Domicile Rule (£3bn).

There are ways of reducing the deficit that have more or less of an impact on ordinary working people – the victims, not instigators, of this crisis.

John Hawksworth, Head of macroeconomics, PricewaterhouseCoopers

A decade of PBRs From Brown to Darling, those autumn statements remembered

The Chancellor needs to put forward realistic economic growth and public borrowing projections and a credible plan for restoring current budget balance by 2015/16.

This plan should include further details on how public spending will be brought under control in the medium term and public sector efficiency improved. Hard choices will have to made on prioritising which spending areas to protect and which to either stop or cut back significantly.

The size of the fiscal deficit means that some big and potentially unpopular tax decisions will also be required in the medium term, and higher green taxes might form part of that package against the backdrop of the Copenhagen summit. But short-term tax rises that might jeopardise the recovery should be guarded against, particularly in areas that could deter business investment and job creation.

In particular, while higher taxes on high earners may appear politically attractive at present, one should note the recent comment in similar circumstances of the Irish Finance Minister, Brian Lenihan. Mr Lenihan warned his nation: "There is no pot of gold that can be raided from the wealthy that can solve our difficulties."

Richard Lambert, Director general, Confederation of British Industry

This is all about credibility and growth. Credibility because the Chancellor needs to set out a realistic path back to fiscal stability – not next week or even next year, but certainly from 2011 on, and we need to restore fiscal balance before the Government's current target of 2017-18. We need measures for growth because without that, restoring the public finances is very difficult. The PBR needs to be skewed towards job creation and investment.

On fiscal policy, we would like to see a tightening by 2015-16, with the emphasis on trimming current spending rather than, as was planned in the last Budget, capital spending. The emphasis should also be on measures to promote private-sector investment and improving our trading performance with the rest of the world.

Recent reports on the NHS, the police and the education system have all suggested much scope for efficiency savings. Some £136bn of savings could be achieved over and above the Treasury's existing efficiency commitments, gradually over a six- or seven-year period, through radically redesigning the delivery of public services and learning from private-sector practice in managing workforce costs and cutting waste.

David Coats, Associate director, The Work Foundation

The Chancellor must have two priorities: minimising the inflow of new claimants on to the unemployment register; and preventing the scarring effects of youth unemployment.

Specific policy proposals we would like to see include the introduction of a short-time working scheme similar to the arrangements that apply in Germany. This has helped to keep German unemployment low and it has been matched by a more ambitious stimulus package than in the UK.

We also favour a one-off expansion of higher eduction places in 2010 so that all suitably qualified applicants are guaranteed a university place. There is an increase in the size of the age cohort in the next year, which will disappear in 2011. We are not calling for a reduction in standards or entry requirements, simply an increase in resources so the grades good enough to secure access in 2007 are the same in 2010.

The job guarantee should be adapted so that an assessment is made at six months over whether a young person will find a job before the 10-month period expires. We would also like an immediate rise in jobseeker's allowance of £10 per week – a symbolic policy change designed to provide more support to the unemployed.

David Frost, Director general, British Chambers of Commerce

There are two simple steps for implementation in the short term. First, extend successful support schemes and promote measures that stoke demand and investment and encourage lending. This should include extending the enterprise finance guarantee scheme that has helped firms during the downturn.

To boost output, the Chancellor should increase the threshold of the annual investment allowance and maintain the temporary first-year capital allowance of 40 per cent. He should also make small business rate relief automatic to ensure more small firms receive the reliefs.

Second, he should clearly outline a credible plan that illustrates how public spending will be pared back over the life of the next parliament, and how the country's finances will be brought under control to prevent our international credit rating from being put at risk. This plan must include freezing the overall public sector pay bill, and reforming public pensions to bring them more into line with the private sector.

In the medium term, the rise in employer National Insurance contributions, planned for 2011, is a tax on jobs and recovery. It should be cancelled. Mr Darling should also maintain investment in vital infrastructure, such as transport, energy and high-speed broadband.

Paul Everitt, Chief executive, Society of Motor Manufacturers and Traders

The success of the scrappage incentive scheme has been crucial to stimulating private demand throughout the

second half of 2009.

It is vital that government does not impose measures that could deter private purchases at this critical time. The SMMT calls for the Government to maintain the reduced 15 per cent VAT rate into 2010 and phase in gradually any increase to avoid a sharp fall in consumer demand; defer the third stage of increases to DVLA first vehicle registration fees; and remove the 3 per cent diesel car penalty in the company car benefit-in-kind calculation.

Government must cut financial and legislative burdens to help generate demand, especially for premium vehicles and in the hard-hit commercial vehicle market. Government should thus encourage commercial vehicle purchases by raising the enhanced writing-down allowance to 60 per cent.

We would also like them to reconsider lifting the expensive car cap (£80,000) in the company car tax regime to remove the stigmatising effect on UK premium products, and to continue consistent and durable incentive programmes for biofuels, ultra-low carbon vehicles and their associated infrastructures.

Brigid Simmonds, Chief executive, British Beer & Pub Association

We need the Government in the pre-Budget report to make a start on implementing policies that recognise the value of beer and pubs to Britain's economic and social life.

Beer is a vital industry which needs a break, having endured huge tax increases in the past year and a half. When it puts VAT back up in January, the Government should return the beer tax hike it introduced last December, otherwise we are going to see another 6p on a pint of beer, so putting more of Britain's hard-pressed pubs under intense pressure.

This should be just the start of a new approach, which would ease the tax and regulatory burden on one of our great industries and traditions. Ever higher taxes just won't work – there are clear signs that tax revenues from beer have now reached a ceiling.

If we do not see a change of policy, then many more pubs will close and jobs will be lost. Just as they have with post offices, the public is increasingly aware of the impact that government policies are having on thesector, and protesting to government and MPs.

This protest movement will only grow, as more people realise that with fewer and fewer pubs, something special about community life in Britain is being lost.

Miles Templeman, Director general, Institute of Directors

There should be a new fiscal target to reduce public spending to 35 per cent of GDP by 2020-21 via a 10-year real freeze in spending. Canadian experience in the 1990s shows that deep reductions in public spending can be achieved – where there's a will there's a way. Progress towards the 35 per cent of GDP target should be monitored by a new independent fiscal policy committee that would also have a remit to monitor the ring fencing of key productive areas of public spending such as transport, energy and IT infrastructure.

The 35 per cent of GDP target for public spending would allow reductions in direct taxation. As a first step, the main rate of corporation tax should be reduced over the next decade, from 28 to 18 per cent. A 12-month pay freeze, possibly extending to 24 months, across the public sector from 2010-11 onwards would yield an annual saving of around £6bn from 2010-11 onwards. There should also be radical reform of public sector pensions, with a one-third increase in employee contributions to unfunded schemes.

As a nation we face some difficult choices. We either squeeze public spending, taxation and regulation, or all three will squeeze the life out of the economy.

John Dickie, Spokesperson, Child Poverty Action Group

To continue the progress made in reducing child poverty, the Government should increase the minimum wage. Although working tax credit provides a valuable and much- needed financial boost, subsidising low wages via tax credits means that families remain reliant on an inherently complex tax credit system which contributes to financial instability, and allows employers to get away with low pay. The gradual removal of tax credits when parents work longer hours or their pay increases constitutes a disincentive to progress at work. And young workers should receive the same recognition of their contributions in the workplace as adults: the minimum wage should be the same for them as it is for adults.

The Government should also increase the earnings disregarded for means-tested and passported benefits – moving into work triggers the sudden withdrawal of support such as free school meals and free prescriptions, and this means that low-paid workers are often no better off in work than they are on benefits. The abrupt removal of benefits contributes to high rates of in-work poverty and poses a major barrier to employment.

A decade of PBRs: From Brown to Darling, those autumn statements remembered

November 2008 Brown goes for broke The battle lines for the election were redrawn as Alistair Darling announced plans to raise taxes for those earning more than £40,000 a year. The Chancellor gambled, abandoning New Labour's pledge not to hike income tax rates, and massively raise borrowing.

October 2007 Boost for thousands of people with second homes Thousands of second-home owners and wealthier individuals were among the winners from Mr Darling's first pre-Budget report, after the Government unveiled plans to slash the rate of capital gains tax from 40 per cent to 18 per cent.

December 2006 Business attacks Brown's tax rises Business reacted with anger as Gordon Brown tightened the screw further on the corporate sector with a series of measures that will raise hundreds of millions of pounds in new taxes. The accountancy firm Deloitte & Touche said the measures would add £500m to the tax burden on business.

December 2005 Industry leaders criticise unchecked spending and 'worrying' borrowing Business groups led by the Conferation of British Industry criticised the pre-Budget report as a "missed opportunity" by Mr Brown, failing to rein in spending and relying too much on higher borrowing and business taxes.

December 2004 Brown taunts the Tories after meeting his growth forecast Mr Brown was able to taunt the Opposition front bench and his critics in the City alike with the news that he had hit his ambitious growth forecast. The Chancellor said gross GDP would come in at 3.25 per cent this year, smack in the middle of the range of 3 to 3.5 per cent that he had set 20 months before.

December 2003 Brown goes deeper into the red Mr Brown moved to prevent further tax increases harming Labour's election prospects by adding an extra £10bn to government borrowing and curbing big increases in council tax. The Chancellor surprised the City by disclosing that borrowing this year would rise from the £27bn he forecast in April to a record £37bn.

December 2002 Chancellor cracks down on tax breaks for bonuses The investment banking sector was dealt a fresh blow in the pre-Budget report, with a clampdown on tax avoidance on big bonuses that was expected to save £435m a year by 2005-06.

November 2001 Brown appeals to heartlands but also tries to keep business sweet Mr Brown appealed directly to Labour's traditional heartlands with a series of pledges on health spending, pensions and jobs while simultaneously seeking to embellish the Government's reputation as a supporter of enterprise.

November 2000 Brown: Everyone must share in the rising prosperity of our nation "We will do nothing to put at risk the economic stability that has given us the lowest unemployment for twenty years, the lowest inflation for 30 years... and a budget discipline that has enabled us to cut borrowing and now invest more every year in hospitals, schools and public services."

November 1999 Public finances: surplus to total £46bn over next four years Mr Brown admitted there would be a little extra in the kitty during the next few years, revising his estimates of likely government revenues compared with March's Budget. But the Chancellor was less optimistic than many forecasters, basing his predictions of future tax revenues on cautious assumptions.