Chancellor Gordon Brown's borrowing and debt rules will not be possible to maintain unless taxes are raised by £11bn annually, according to analysis from the Institute of Fiscal Studies.
The FT says the IFS’ annual “green budget” suggests the government will fall £6.5bn short on its Golden Rule of only borrowing to invest over the business cycle. Every scenario considered by IFS and investment bank Morgan Stanley suggests the government would be forced to break its rule of keeping public debt below 40% of GDP, the FT writes. The Times says the criticism is compounded by a review of Brown’s Pre-Budget Report by the Treasury Select Committee that suggests the Treasury has overestimated corporate tax receipts. The Treasury is forecasting rises in such receipts of 15% ...
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