Faisal Islam: We are heading for significant tax rises

The current approach to managing public finances, characterized by a persistent reliance on increased borrowing, is proving unsustainable in the face of rising day-to-day spending demands. This pattern of accumulating debt, while seemingly addressing immediate financial pressures, is not a viable long-term strategy for economic stability. Expert analysis indicates that continuing to finance ordinary expenditures through further borrowing will inevitably lead to a critical juncture. To recalibrate the nation’s fiscal health and ensure future economic resilience, significant adjustments to the tax system are anticipated. The trajectory suggests an upcoming period where substantial tax rises will be necessary to balance the books and move away from this unsustainable dependency on borrowed funds.