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.

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.