The British authorities will be forced to sharply increase taxes, writes the Financial Times with reference to a document of the Ministry of Finance. The COVID-19 pandemic has pierced the UK treasury. The British government provides financial assistance to about 1 million businesses and pays benefits to 7.5 million residents, which employers have sent to forced downtime – more than a quarter of all employed British.
This year’s budget deficit will be £337 billion, far greater than it was during the 2008 crisis. The British Ministry of Finance proposes to increase income tax, freeze wage indexation in the public sector for two years and limit the growth of pensions for civil servants. Otherwise, the country will face a sovereign debt crisis, the Ministry of Finance warned.