Tuesday, 9 March 2010

Another £20bn of tax rises and spending cuts will be needed, PwC says

"The accountant said its projections were based on less optimistic UK growth forecasts over the medium term compared with the Treasury. PwC said that trend growth rate in the UK is likely to be 2.25pc a year, and not the 2.75pc forecast by the Treasury.It estimated that Government borrowing would be around 5pc of gross domestic product in 2014-15, higher than the Treasury's forecast of 4.4pc. PwC said the fiscal gap could be closed through many possible combinations of tax rises and spending cuts starting from 2011-12 and building up to around £20bn a year by 2013-14. "

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