Government Spending

U.K. Budget Expected To Require Big Tax Increases

Spending too much is not just an American problem

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Households and businesses face more painful tax rises after the next election, a leading economic forecaster has warned.

The Institute for Fiscal Studies said that George Osborne's Budget this week had paved the way for big tax increases from 2016.

The IFS, the foremost independent analyst of the public finances, also accused Mr Osborne of wasting public money by "massaging" spending plans to avoid the embarrassment of a rising deficit.

The Treasury this week halved its forecast for growth in 2013 to just 0.6. It also revealed that tax revenues were £5bn less than planned, pushing up the deficit.