A drastic fall of 5.2% in corporation tax receipts was among the reasons behind a ballooning £6.7bn public borrowing requirement in the year to August, up from £500m in the same period the year before.
PwC economist John Harksworth said the figures implied a full-year budget deficit of £16bn, way above the Treasury’s £11bn forecast. A growing budget deficit could lead to higher taxes, said Royal Bank of Scotland economist Geoffrey Dicks.
Treasury assumptions of 2 to 2.5% growth this year and 3 to 3.5% in 2003 compare unfavourably to recent independent forecasts of 1.5% this year and 2.5% next year.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements