PwC: extra tax rises needed to narrow UK fiscal gap
Public service reform could save £20 billion, according to PricewaterhouseCoopers
Tax rises and public sector efficiency could save the government £20bn over
the next four years, PricewaterhouseCoopers has claimed in a report.
The world’s biggest accounting firm, has outlined proposals to help the UK
government fill a fiscal gap estimated at £43 billion – three per cent of
today’s GDP figure – by 2013/14.
The report says that higher public borrowing is inevitable in the short-term
to lift the UK out of recession, but that the UK’s balance could be repaired by
2013/14.
Aside from improved public sector efficiency, the report calls for
‘significant’ tax increases in 2011 in addition to those set out in the
Pre-Budget Report.
Read the PwC report:
PricewaterhouseCoopers
LLP sets out proposals to close £43 billion fiscal gap