Bailouts expected to add £1.5 trillion to national debt as tax take tumbles | WHAT REALLY HAPPENED

Bailouts expected to add £1.5 trillion to national debt as tax take tumbles

A slump in tax receipts caused by the recession has driven the Government’s finances farther into the red than at any time for 15 years.

Official figures confirmed mounting strains on the Treasury, with Alistair Darling forced to borrow £67.2 billion in the first ten months of this financial year. This was almost three times as much as the same period last year.

The news was followed by warnings from the City that the Chancellor’s full-year forecast for public borrowing of £78 billion would prove to be far from accurate. Economists said that the figure for this year could rise to £100 billion, with borrowing set to surge still higher in 2009-10.

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