Just to pour a little petrol onto the fire. Revenue that government receives will shrink, and its spending will increase. That means even less for us, as an increase in direct taxation is an inevitability. The main losses to Gordon will be less revenue from capital gains tax, stamp duty, VAT, and death duties. Probably a few other things to throw in. At the same time, government will have to fork out more for tax credit, more for unemployment benefit, more for NHS, two expensive wars (a third pending). So tax will be going up, play around with the tax codes and chop a few allowances. By the time Gordons finished, and chuck in an inflation rate of 10% or more, the credit crunch wont matter, as no one will want a loan, unless of course its for a loaf of bread.
Happy days are ahead
