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WorldMore of 'black hole' to be filled by spending cuts than tax...

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More of ‘black hole’ to be filled by spending cuts than tax hikes

The Government’s key goal today is to restore stability and credibility when it comes to the economy.

You can expect the chancellor to talk about the need to balance the books and fill a fiscal black hole. The Treasury believes it is around £54bn pounds.

Slightly more of it will be filled by cutting spending that raising taxes, the ratio is around 55% to 45%.

But not all of this is popular or accepted by everyone. Some believe the spending cuts will go too far and return the UK to a form of austerity.

Others – among them some Tory MPs – believe the tax rises are a problem and could make a recession longer and deeper.

Source: BBC

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