Untying the Gordian knot

Robert Chote

Published on 31 January 2003

In his Pre-Budget Report (PBR) last November, Gordon Brown conceded that the impact of the weak economy on tax revenues would force him to borrow more than he had expected this year and next.

As the Budget looms and the economy remains unsettled, the chances are that the chancellor will have to put taxes up if he is to stick with his spending plans and his 'golden rule', predicts the Institute for Fiscal Studies.

In his Pre-Budget Report (PBR) last November, Gordon Brown conceded that the impact of the weak economy on tax revenues would force him to borrow more than he had expected this year and next. But thereafter, to echo Labour's theme song, things culd only get better.