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Families will have to pay additional taxes of £ 125 per month to cover the £ 42 billion annual hole


Families will have to pay an additional £ 125 a month in taxes over five years to keep national debt from spiraling out of control, a think tank warned last night.

The Institute for Fiscal Studies said that due to the coronavirus pandemic, borrowing will already reach levels not reached outside of the two world wars.

It warned that if Britain is not "lucky" there will be tax hikes of more than £ 42 billion a year by the middle of this decade.

This is an additional £ 29 per week per household – and a 6p increase would be required for both property and higher income tax payers to increase that amount.

The IFS said that with the economy now shrinking due to the lockdown measures, the government is facing another slump in tax revenues that could easily exceed £ 200 billion.

While the coronavirus winter shows up:

  • Britain had 13,972 Covid cases on Monday, up 11 percent last Monday;
  • Nicola Sturgeon said Scotland will produce its own "tiered" lockdown system.
  • Jonathan Van-Tam said more deaths and hospitalizations are already "branded";
  • There are currently fewer than 50,000 cases a day in the UK that have been warned by Sir Patrick Vallance.
  • Scientists found that Covid can survive on surfaces like banknotes for a month;
  • The town halls are given the authority to send volunteers to ask people to self-isolate.
  • Northern Labor leaders were demanding more cash from the government;
  • The BCG vaccine was given to 1,000 people in a study at the University of Exeter.

According to a think tank, families will have to pay an additional £ 125 per month in taxes over five years due to government debt. Rishi Sunak (pictured) said the government has a "responsibility" to balance the books

The Institute for Fiscal Studies said that due to the coronavirus pandemic, borrowing will already reach levels not reached outside of the two world wars. Pictured: A Covid warning sign in Manchester

The Institute for Fiscal Studies said that due to the coronavirus pandemic, borrowing will already reach levels not reached outside of the two world wars. Pictured: A Covid warning sign in Manchester

The IFS fears unemployment could approach three million, its highest level since the early 1990s.

The warning came after Chancellor Rishi Sunak said last week that the government had a "sacred responsibility" to future generations to balance the books.

Sunak is pouring £ 1.5 billion into UK councils to help them cope with the new rules

Local councils are set to receive £ 1.5 billion in fresh money to deal with the latest coronavirus restrictions, Rishi Sunak said tonight as he also offered cash grants to businesses in Wales, Scotland and Northern Ireland.

The free-spending Chancellor was out with Boris Johnson at a live television news conference tonight when the Prime Minister warned the UK could not ignore "flashing warnings" about growing coronavirus cases.

Millions of people will be deeper into the lockdown in the north-west and north-east of England this week despite fears for thousands of jobs, particularly in the hospitality industry.

Mr Sunak tried to sweeten the lockdown medicine by pledging more money to local authorities, which will play an increasing role in establishing and enforcing the lockdown in their area.

He said: “For local authorities entering Stage Three, we are allocating up to £ 0.5 billion to fund activities such as enforcement, compliance and contact tracing.

"And to protect vital services, we are giving all local authorities around £ 1 billion in additional funding on top of the £ 3.7 billion we have been providing since March."

In its “green budget” report, IFS predicted that while it would be unwise for ministers to try to balance the books while the economy still needs support, it is almost certain that taxes will have to rise in the medium term.

Paul Johnson, director of the Institute for Fiscal Studies, told the Today program, “The economy is in pretty bad shape right now. We lost more production in the past year than in the entire financial crisis, unemployment. We will be lucky if we keep what is below three million, which will be the highest since the early 1990s.

“We borrow more than in all of our history, apart from World Wars I and II

“The consequence of this is that the economy will likely remain at a lower level for many years to come. The scarring from this virus will continue. It is true that the government is putting a lot of money into the economy at the moment.

“There will be a price that we will have to pay later. Three, four, five years later the economy will still be smaller than it used to be. In the end we have to pay for it. "

Assistant Director Carl Emmerson said it would be safer for Conservatives to say, "We'll never even balance the books before the next election," and we wouldn't advise trying.

The report said the government has already increased spending on daily public services by £ 70 billion in response to the pandemic.

Even if three-quarters of that stopped this year, it would add £ 20 billion to public sector borrowing by 2024-25.

The IFS said that under its "central scenario" the economy would be 5 percent smaller in four years than it was forecast at the start of the outbreak in March.

This would mean a £ 10bn burden on public finances in terms of lost tax revenue – albeit in more pessimistic scenarios that could double to £ 200bn.

In the central scenario, the public sector's net debt is expected to be slightly more than 110 percent of national income in 2024/25 – compared to 80 percent before the pandemic and 35 percent in the years before the financial crash of 2008.

The IFS said that even if ministers were satisfied with keeping debt constant at 100 percent of national income and borrowing around £ 80 billion a year, that would mean a "budget tightening" of around 2 percent of national income in 2024 require. 25. That’s more than £ 40 billion today.

IFS Director Paul Johnson said yesterday: “Given the extremely low cost of borrowing, Mr. Sunak shouldn't be unduly concerned about the debt it creates for the time being. It is necessary.

Unfortunately, none of this will be enough to protect the economy in the medium term.

Without action, the debt – already at its highest level in more than half a century – would continue to rise.

Tax hikes and big tax hikes seem far from inevitable, though likely not until the middle years of this decade. & # 39;

From April to August this year, net borrowing surged to over £ 173 billion as Chancellor Rishi Sunak funded the wages of employees on leave and bailed out companies

From April to August this year, net borrowing surged to over £ 173 billion as Chancellor Rishi Sunak funded the wages of employees on leave and bailed out companies

The report said that in every major economy except China, GDP contracted in the first half of the year, while the UK and Spain suffered the largest declines at 20 percent. This is twice as much as in the USA and Germany.

According to salary data, 700,000 jobs have already been lost before the first vacation program is completed later this month.

According to the report, the unemployment rate is expected to rise to around 8 or 8.5 percent in the first half of 2021 – between 2.7 and 2.9 million people.

At the same time, Brexit remained "a significant economic challenge" for the country.

Rishi Sunak sweetens lockdown medicine: Chancellor pours £ 1.5 billion into UK councils to help them cope with the new rules and pledges £ 1.3 billion in grants to companies in Wales, Scotland and Northern Ireland

Millions of people will be deeper into the lockdown in the north-west and north-east of England this week despite fears for thousands of jobs, particularly in the hospitality industry

Millions of people will be deeper into the lockdown in the north-west and north-east of England this week despite fears for thousands of jobs, particularly in the hospitality industry

Local councils are set to receive £ 1.5 billion in fresh money to deal with the latest coronavirus restrictions, Rishi Sunak said tonight as he also offered cash grants to businesses in Wales, Scotland and Northern Ireland.

The free-spending chancellor was out with Boris Johnson at a live television news conference tonight when the prime minister warned the UK could not ignore "flashing warnings" about growing coronavirus cases.

Millions of people will be deeper into the lockdown in the north-west and north-east of England this week despite fears for thousands of jobs, particularly in the hospitality industry.

Mr Sunak tried to sweeten the lockdown medicine by pledging more money to local authorities, which will play an increasing role in establishing and enforcing the lockdown in their area.

He said: “For local authorities entering Stage Three, we are providing up to £ 0.5 billion to fund activities such as enforcement, compliance and contact tracing.

"And to protect vital services, we are giving all local authorities around £ 1 billion in additional funding on top of the £ 3.7 billion we have been providing since March."

The free-spending Chancellor was out with Boris Johnson at a live television news conference tonight when the Prime Minister warned the UK could not ignore "flashing warnings" about growing coronavirus cases

The free-spending chancellor was out with Boris Johnson at a live television news conference tonight when the prime minister warned the UK could not ignore "flashing warnings" of rising coronavirus cases

More than 17 million people are affected by the two higher levels of risk in the new system of government, while the rest of England is subject to bars and restaurants curfew after the 6am and 10pm rule

He reiterated his winter economic plan, which includes a scaled-down version of the vacation program that pays two-thirds of the wages of employees in companies that are forced to close.

He added: “Companies in England that are legally required to close can now apply for a cash grant of up to £ 3,000 per month depending on the value of their business premises.

& # 39; These grants can be used for any business expense and never need to be repaid.

"And I guarantee the Scottish, Welsh and Northern Irish administrations an additional £ 1.3 billion if they choose something similar."

The Prime Minister unveiled his new "three tier" system, stating that Liverpool will be the first area to be subject to the highest restrictions – which means pubs will be closed and households will not be mixed indoors or in gardens.

However, there was trouble when another part of the country is thrown into Tier Two. Bars are allowed to stay open, but households are not allowed to mix indoors. Many of the locations already have similar curbs, but others – like Manchester and the West Midlands – are set to tighten.

Deputy Chief Medical Officer Jonathan Van-Tam presented the government's latest assessment of the COVID situation using diagrams at a briefing today

Deputy Chief Medical Officer Jonathan Van-Tam presented the government's latest assessment of the COVID situation using diagrams at a briefing today

Confusingly, in some other places the rules are being relaxed as the rules are being "streamlined".

Mr Johnson insisted that he had no choice but to have the UK record an additional 13,972 Covid cases today – up 11 percent from last Monday – and said the other options were to "rip up" the virus or the To let the economy "destroy". Liverpool's case rate per 100,000 population rose 14.3 percent to 609 in the past week.

Speaking at press conference # 10 tonight, Mr. Johnson said, "The numbers flash on us like warnings on the dashboard of a passenger plane and we must act now."

He added: None of me want to impose these kinds of restrictions, erosions of our personal freedom, but I believe, as always, that the British people have the determination to fight this virus and that together we will do just that . & # 39;

However, Prof. Whitty risked undermining the Prime Minister's finely calibrated message by pointing out that the "professional view" was that basic level three measures were "not enough" to control the virus. He urged local leaders to use the "space" in the rules to tighten restrictions.

How England is collapsing in new levels of COVID

ANIMAL THREE – VERY HIGH RISK

Liverpool City Region

Liverpool, Knowsley, Wirral, St. Helens, Sefton, Halton

TIER TWO – HIGH RISK

Cheshire

Cheshire West and Chester, Cheshire East

Greater Manchester

Manchester, Bolton, buried, Stockport, Tameside, Trafford, Wigan, Salford, Rochdale, Oldham,

Warrington

Derbyshire

High Peak – the wards of Tintwistle, Padfield, Dinting, St. Johns – Old Glossop, Whitfield, Simmondley, Gamesley, Howard Town, Hadfield South, Hadfield North

Lancashire

Lancashire, Blackpool, Preston, Blackburn with Darwen, Burnley

West Yorkshire

Leeds, Bradford, Kirklees, Calderdale, South Wakefield

Yorkshire

Barnsley, Rotherham, Doncaster, Sheffield

Northeast

Newcastle, South Tyneside, North Tyneside, Gateshead, Sunderland, Durham, Northumberland

Tees Valley

Middlesbrough, Redcar and Cleveland, Stockton-on-Tees, Darlington, Hartlepool

West Midlands

Birmingham, Sandwell, Solihull, Wolverhampton, Walsall

Leicester

Leicester, Oadby and Wigston

Nottingham

Nottinghamshire, Nottingham City

TIER ONE – MEDIUM RISK

Rest of england

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