Revenues fall prompting tax hike fears

Receipts from income tax are 3.1% lower than in January and February last year while corporation tax has dipped 18.9% lower.

Even though the chancellor is juggling a resonably healthy surplus, deficits predicted for future years could be even greater than expected if he goes ahead with planned spending plans.

According to reports in the national press the pressure in on Brown to bring in hefty tax increases as a result.