A new, leaked Treasury document has detailed some of the options for paying back a deficit that may hit £337billion by the end of the coronavirus pandemic. The Telegraph reports Government officials have discussed freezing public sector pay rises for another two years and ending the ‘triple lock’ system which ensures pensions rise in line with inflation.
Will tax go up after Coronavirus?
The document, dated May 5, reveals new forecasts for Britain predict the deficit will reach £337billion, as opposed to the £55billion estimated in the March Budget.
Traditionally, there are only a few ways to raise money – borrowing, tax rises and a campaign of austerity, so it does not seem unlikely that tax rises will follow coronavirus.
Transport Secretary Grant Shapps today said although he didn’t recognise the “speculative” figures, Britain would not be going back to “a world of austerity”.
The Treasury declined to comment on the report, but it is understood the document is one…