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