Qualified advisers answering your
Financial Questions
call 0800 092 1245

When will we see taxes increase?

While many people will point to a reduction in public sector investment there is only one way in which to tackle the U.K.'s growing debt crisis. Income taxes will rise in the short, medium and longer term to make up the shortfall in not only the UK budget but also to reduce the ever-growing debt mountain. Those who would suggest that tax rises will be minimal are living in dreamland and will be in for a significant shock in the future.

The balancing act for the UK government is to know when to increase taxes and when to the economy breathe and recover. If Alistair Darling gets this particular scenario wrong he could place more pressure on the UK economy, by cutting consumer spending, and push the UK back into a recession. There are some who already believe we are on the verge of the second stage of a "W" shaped recession which could come to fruition in 2010. Whether this gives the UK government enough scope to win the next general election and then tackle the second part of the economic cycle, if this turns out to be correct, remains to be seen.

Taxes will rise, both direct and indirect, and consumers and businesses will be hit harder and harder in the years to come.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details