ITEM Club: Tax rises in 2006 are inevitable
It's the consumer that is now prudent, not the Chancellor, according to Ernst & Young's ITEM Club.
ITEM said its winter forecast shows the UK economy improving modestly throughout 2005 with expected GDP growth of 2.6%, driven principally by the public sector, but hitting a wall in 2006.
It expects government funding problems to culminate in tax rises in next year's Budget.
Household finances remain in relatively good shape, in contrast.