TAXES

More pain for exchequer

8th May, 2010

The most serious potential impact of the sovereign debt crisis is that it looks certain to increase the cost of fresh borrowings by the state. This will increase the cost of servicing the national debt, and will mean that we have to cut spending or increase taxes by more to meet the target of reducing our deficit each year.

The situation is still very fluid, so it is difficult to put figures on this. There...

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