THE GOVERNMENT’S tax income from private companies and individuals has slumped due to the recession. Tumbling profits have pushed the government’s business tax income down 38% while unemployment has increased spending on benefits by 10% in the past year.
So this July the government had to borrow £8 billion – the first such borrowing since 1996 in a month of July, historically one of the strongest times of year for tax receipts.
While a gung-ho media claims the recession is over, there are fears that public debt will grow to at least £800 billion in this current year – £13,000 for every man, woman and child in the country. The unions should prepare to fight as the government will be looking at savage cuts in vital public services to ‘solve’ this problem.
