UK Needs to Raise an Extra GBP 15 Billion

May 3, 2017 Taxation in UK

taxes in the UKLONDON – In order to close its budget gap, the UK will either need to amp up taxation or drastically cu public spending.

The UK needs to find an extra GBP 15 billion over the next few years in order to close its budget plan on time, according to new information in a report released by the Institute of Fiscal Studies.

The need to collect an extra GBP 15 billion is unlikely to sit well with taxpayers, as the needed funds may be raised through increased taxes.

The alternative means to raise the needed funds is to enact further cuts to public spending and funding of social programs.

It was noted in the repot that the public spending by the government is currently sitting at the same level as it was prior to the Global Financial Crisis, despite several years of austerity measures.

In the report it was explained that the public spending still represents a significant proportion of the economy due primarily to the slower-than-expected economic growth, and the proportional rise on healthcare, pensions, and foreign aid.

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