Because economic growth will be slower than Gordon Brown believes, there will be a £20bn shortfall in the treasury by 2006, the think-tank said. Brown will not be able to borrow his way out of the situation leaving tax hikes as the only feasible solution.
The institute has joined the growing ranks of bodies that have become concerned over government coffers. Last week the Ernst & Young Item club said tax revenue would fall short by £7bn this year.
Two weeks ago Accountancy Age reported the Centre for Economics and Business Research predicting a further NIC hike of three pence in the pound by 2006.
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