How will UK pay for virus crisis measures
Of all the uncertainties caused by the Covid-19 pandemic, one thing feels beyond doubt at some point, taxes are going to have to rise.
Tackling the crisis has led to a massive surge in UK public spending. Combined with the impact the coming recession will have on tax receipts, the Financial Times estimates a budget deficit exceeding £337bn could be the result.
The chancellor Rishi Sunak faces tough choices. Increasing government borrowing could cover much of the shortfall, but the prime minister has ruled out deep cuts to public spending seen after the 2008 financial crisis. While unpopular, increasing some taxes would send a signal that ministers are getting the deficit under control.
This week, a leaked Treasury document presented a shopping list of potential tax...