Tuesday, October 09, 2007

Tax And Borrowing Both Up

He wouldn't have been impressed
The bottom line on Darling's first budget is that he's increased both taxes and borrowing.

For next year- the only forecast year not simply made up to look good- borrowing is up by £7bn since the March forecast (see here table B2). It's now put at £36bn, almost unchanged from this year's £38bn (itself increased by £4bn since March).

For 2010-11, the first year when all his new taxes will have kicked in, total taxation is up by £1.4bn pa (see here table 1.2).

So since, as that nice Mr Ricardo (pic above) pointed out, borrowing is simply the equivalent of taxes tomorrow, Darling has increased our taxes by rather a lot.

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