DICKENS OF A TALE FROM CHANCELLOR
With Christmas only two weeks away, Chancellor Gordon Brown has the choice of playing Santa or Scrooge when he presents Wednesday's pre-Budget Report.

But with a widening Budget deficit, the Dickensian option is the more likely. Indeed, Mr Brown's dilemma also brings Mr Micawber's maxim to mind.

Last year, Mr Brown froze allowances and Ernst & Young thinks there is a good chance of a repeat performance.

What other measures can we expect from the-Budget Report?

Ernst & Young says if the Chancellor is to maintain increased public spending, bad news is inevitable. An increase in VAT should therefore not be ruled out.

At 17?%, the UK still has one of the lowest rates in Europe. A hike to 20% would banish his budget blues and still only leave us mid-scale. But it would also put added pressure on pay demands.

Will the Chancellor be forced to eat humble pie over borrowing ahead of his Christmas pud?

Many expect him to raise estimates for the public sector net borrowing requirement - from ?27bn to ?33.4bn for 2003-4 and from ?24bn to ?35.2bn for 2004-5.

But the Centre for Economic and Business Research thinks Mr Brown's blushes may be spared - for the moment. It expects a rather smaller overrun, particularly as growth has begun to look stronger.

More upbeat reports on the state of UK have raised hopes for Monday's data on October manufacturing output.

After the heatwave caused a 0.5% drop in August, expectations of a bounce back in September were thwarted when figures showed a further 0.2% decline.

Fingers are also crossed for Tuesday's trade figures. The UK's goods deficit was a dismaying ?4.8bn in September - the worst since last November's record.

Early Christmas for BA and Burberry?

Christmas could come early for British Airways this week, thanks to a recent rally in its share price.

The airline just missed reinstatement to the FTSE 100 blue chip list back in September, but should make it with ease at this Wednesday's quarterly review.

Luxury label Burberry is also in with a chance of promotion, while bars group Mitchells & Butlers is amongst those at risk of relegation to the FTSE 250.

Blue chip names reporting this week include Severn Trent. The water and waste group reported a strong start to the year ahead of Tuesday's interims.

DIY retailer Kingfisher provides third quarter figures on Wednesday. It has already told the City to expect a 3.6% increase in same store sales.

Thursday sees publisher Trinity Mirror offers a trading update, following the recent sale of its Irish titles.

First Choice Holidays, which sold much of its Spanish business for ?30.2m last month, has assured the City that Monday's finals will meet expectations.

They could make make a stark contrast with those of rival MyTravel, which has seen another top executive depart ahead of its own finals on Wednesday.

Henlys, maker of the familiar American yellow bus, has warned its finals out the same day will make grim reading.

Transport operator Stagecoach, issuing interims on Wednesday, has also been slimming down with the ongoing disposal of its operations in the US.

Medisys, reporting on Monday, is under pressure to report on the future of its Futura safety syringe after a falling-out with marketing partner Smiths.

Brewer Greene King should cheer the City on Tuesday with first-half profit boosted by the record-breaking summer.

MONDAY December 8

Finals: Medisys, SCI Entertainment, Treatt.

Interims: Carclo, Faupel Trading, Samuel Heath, International Greetings, LitComp, MITIE Group, Total Systems.

Index of production (Oct). Producer prices, British Retail Consortium retail sales monitor (Nov).

TUESDAY December 9

Finals: First Choice Holidays, Grainger Trust, ITE Group, Phytopharm, Tadpole Technology, Theratase.

Interims: Computerland, Greene King, Halma, Medal Entertainment & Media, PHS , Severn Trent, Victrex.

UK trade (Oct). US interest rate decision.

WEDNESDAY December 10

Finals: Blick, Centurion Electronics, Hardys & Hansons, Henlys Group, Numis Corporation.

Interims: Applied Optical Technologies, iSoft Group, Kingfisher (Q3), Oasis Healthcare, DS Smith, Stagecoach, Vega.

Chancellor's pre-Budget Report. FTSE indices quarterly review.

THURSDAY December 11

Finals: Capcon Holdings, MyTravel Group, NHP.

Interims: Jarvis Hotels.

Trading update: Trinity Mirror.

Confederation of British Industry industrial trends survey.

FRIDAY December 12

Finals: Anite Group.