ktlight
14th July 2011, 10:05
Debt currently at 60 per cent of national income
Cost of NHS and state pensions predicted to increase
Tax revenues expected to fall over the same period
FYI:
Taxes may have to go up by as much as 12p in the pound for the next 50 years simply to keep Britain from going bust, an independent watchdog warned yesterday.
The burden of extra levies will fall upon the public for half a century to cope with the aftermath of the credit crunch and the impact of our ageing population.
Income tax would have to rise by 5p in the pound to keep the economy solvent, and may even have to go up by 12p if reforms to make the National Health Service more efficient do not work.
The nightmare scenario was contained in a report from the Office for Budget Responsibility, which said the only way to avoid the tax rises would be to impose even more swingeing cuts to public services than are currently taking place.
It warned that ministers will be left with difficult decisions if they want to get our debt levels down to 40 per cent of national income – considered a safe level for a solvent economy.
Debt is currently at more than 60 per cent.
The OBR was set up by Chancellor George Osborne to provide independent advice on public spending – meaning its calculations on future tax burdens over the next 50 years will be studied closely in the Treasury.
source to read more
http://www.dailymail.co.uk/news/article-2014524/Britain-debt-Taxes-rise-12p-suffering-50-years.html
Cost of NHS and state pensions predicted to increase
Tax revenues expected to fall over the same period
FYI:
Taxes may have to go up by as much as 12p in the pound for the next 50 years simply to keep Britain from going bust, an independent watchdog warned yesterday.
The burden of extra levies will fall upon the public for half a century to cope with the aftermath of the credit crunch and the impact of our ageing population.
Income tax would have to rise by 5p in the pound to keep the economy solvent, and may even have to go up by 12p if reforms to make the National Health Service more efficient do not work.
The nightmare scenario was contained in a report from the Office for Budget Responsibility, which said the only way to avoid the tax rises would be to impose even more swingeing cuts to public services than are currently taking place.
It warned that ministers will be left with difficult decisions if they want to get our debt levels down to 40 per cent of national income – considered a safe level for a solvent economy.
Debt is currently at more than 60 per cent.
The OBR was set up by Chancellor George Osborne to provide independent advice on public spending – meaning its calculations on future tax burdens over the next 50 years will be studied closely in the Treasury.
source to read more
http://www.dailymail.co.uk/news/article-2014524/Britain-debt-Taxes-rise-12p-suffering-50-years.html