Government could raise taxes to cover £90bn borrowing rise
Credit crisis will cause huge rise in borrowing and possible income tax hike, experts predict
The state of the government’s finances are so perilous that it may have to
borrow £90bn next year and raise taxes.
Analysis by the Centre for
Economics and Business Research predicts that borrowing this year will be
$63bn, well above the £43bn forecast by chancellor Alistair Darling, rising to
£90bn in 2009-10. To cover the shortfall, income tax would have to rise by 5p in