Taxes must jump 6p in the pound to cut deficit - papers

Taxes must rise sharply over the next decade to bring down borrowing, according to the National Institute of Economic and Social Research (Niesr).

In a report, the think tank said taxes would have to rise by the equivalent of 6p on the basic income tax rate to get the budget deficit below 3% by 2020, writes the BBC. It also said the UK economy faces sluggish growth and rising unemployment this year. Niesr expects growth of just 1% this year, followed by 2.25% growth in 2011. FULL STORY...