Forecast of 10p tax rise concerns many experts
As Alistair Darling's budget continues to come under severe pressure many experts are warning that taxation could rise by up to 10p in the pound in order to pay back the massive UK debt and realign the budget deficit. Many are also forecasting a significant cut in public services, something which the Labour government has refused to confirm, as the UK economy continues to struggle.
While the various forecasts being bandied around at the moment are fairly severe, there is no doubt that taxation in general will increase significantly in the UK over the next decade. While it has taken only 12 months for the national debt to break through the £1 trillion barrier, with some suggesting it could reach up to £3 trillion, it will take years to pay back these borrowings. Much like a potential bankrupt on the verge of losing everything, the UK government will be forced to refinance UK debt over and over again to reduce the short-term explosion of taxation.
No political party has been willing to come forward with a set of forecasts and budget for after the next general election and we are unlikely to hear of any significant budget details even as the general election draws closer. The Labour government is unwilling to reveal the full extent of the UK national debt and opposition parties have no idea what awaits them.
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