Higher taxes ‘inevitable’

Chancellor Alistair Darling has hinted at higher taxes and lower public spending in the future, once Britain comes out of the current economic crisis, The Telegraph reports.

He said the Government will have to “live within its means” in order to rebalance the budget once the economic crisis has passed.

He said: “We can boost the economy only because we have built a foundation of sustainable public finances, because governments everywhere must live within their means, and I will ensure that we do this in the medium term.”

A spokesperson for debt management company Gregory Pennington said: “The concept of higher taxes will have crossed many people’s minds, given the increase in Government spending. Of course, that would put a strain on many people’s finances, especially those in debt.

“With that in mind, it’s a good idea for people to tackle debts now, before any future tax increases take a bite out of their monthly income. Anyone struggling with debt should seek professional debt advice as soon as possible.”

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