UK overspending may mean tax rises
New figures show the government is set to exceed its public sector borrowing forecasts by about £10bn, meaning a likely increase in taxes is on the cards.
Link: ‘Treasury to understate pension liability by billions’
The largest ever gap between tax revenue and spending has raised new fears over the state of government finances.
The public sector net cash requirement was more than £2bn above forecasts at £8.6bn.
Government spending has increased by more than 10% while tax revenues are rising at a rate of just 6%.
Analysts predict that the government is now more likely to raise taxes before the next election.