Government borrowing could reach £90 billion
It has been revealed that the government’s financial position is so bad that next year it may have to borrow up to £90 billion and raise taxes.
As Alistair Darling gave a speech at the Labour Party conference promising to tackle the difficult economic climate, the state of the government’s finances were revealed by the Centre for Economics and Business Research.
The Centre predicts that borrowing this year will be £63 billion, £20 billion more than forecast by the chancellor. This figure could rise to £90 billion next year, with income tax also rising to cover the shortfall.
In his speech Mr Darling pledged to deal with the, “extraordinary turbulence” in the financial system and claimed he was “confident” it would emerge from the current economic downturn stronger.
