dealing with debt

We know of a series of tax rises which are to hit us over the next two years and after. These were announced or not announced in various places in the last budget statement.

Business are already facing a rise of 2% on the uniform business rate. It was to have been 5%, but the remaining 3% will be phased in over the next two years.

Tax on alcohol and tobacco went up 2% in April 2009, fuel duty will rise by 2p a litre in September and then by inflation plus 1p in April 2010.

At the end of 2009 VAT will rise to its original 17.5%, having largely flopped.

In April 2010 income taxes will rise for (those still remaining) high earners., with the 50% band for all those earning more than £150,000 p.a., which will raise little or no extra revenue for the government, and a pound for pound reduction in tax allowances on all incomes over £100,000.

In April 2011 the tax relief at 40% on pension contributions will be abolished, and employees and employers will each pay 0.5% extra National Insurance contributions.

There are potentially massive increases to come, and there may still be time for Darling to increase others in the Autumn and Spring, if Brown and Darling are still in power. Experts are already suggesting that even on Darling's present forecasts of growth in government debt over the next five years, without spending cuts income tax rates would have to almost double in an attempt to deal with the debt.

There are many experts who suggest that Darling's growth estimates are very, very optimistic, - another way of saying very unreasonable. If the experts are right then the public finances are going to be even worse.