Think-tank: Spending cut or tax rise required
News Article - 19 September 2008
Category:
A £20 billion cut in public spending or an income tax rise of
5p in the pound will be required within the next three years, a
think-tank has claimed.
The National Institute of Economic and Social Research believes if
business growth remains weak then the government
will have to make the decision to stop the country's finances
falling further into the red.
A weakening housing market and the credit crunch have all taken
their toll while borrowing is already at extremely high
levels.
"The Government needs to be seriously rethinking spending plans
given what has happened over the past year," said the institute's
senior fellow, Ray Barrell.
"Either spending needs to be cut or taxes must rise."
The announcement by the think-tank is the latest bit of bad news
on the economy.
A report from the Hay Group and the Centre for Economic and
Business Research suggested 110,000 jobs could be lost in Britain's
banking and financial services industry, while the TUC warned that
unemployment could reach 700,000 next year.
Article keywords:
Adam Furniture is a £3.2 million, 46-employee organisation
which has been manufacturing kitchens and bathrooms since 1973. The
business is still owned by the founder's family and its factory,
warehouse, showroom and offices are all located in Droylsden,
Greater Manchester.
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