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UK families and the £1250 a year tax rise to cover runaway government debt

A report by the Institute for Fiscal Studies (IFS) ahead of the government's budget on 22 April has highlighted the severe deterioration in the finances of the UK economy. The IFS believes that the UK government has yet to account for the losses to the tune of £130 billion from various funding arrangements with nationalised UK banks. As a consequence, the government will need to find around £39 billion a year by the end of 2015 to plug the gap.

Each and every day there seems to be a damning report on the finances of the UK with government debt set to spiral still further in the short to medium term. The IFS believes that public-sector debt could rise to a shocking 80% of national income compared to the current forecast of just 57% from the UK authorities. This is a damning indictment of the current UK government and the ever deteriorating situation regarding national debt.

Forecasts for national debt range from anywhere between £1 trillion to £3 trillion with nobody quite certain how bad it could get. There has been little, if any, return on government investment so far into the banking sector although just lately there have been inklings of a potential improvement in finances available to the public and business.

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