By Karim Hammam
Two-thirds of Britons are pessimistic about the UK economy's future, and 70 per cent expect tax increases in Chancellor John Healey's first Budget, according to new Ipsos polling released ahead of Wednesday's statement.
Poll reveals deep economic anxiety
The survey shows 67 per cent believe the general economic condition will worsen over the next year, while only 14 per cent anticipate improvement. A majority also expect Labour to increase government borrowing and the national debt, though 51 per cent foresee higher public service spending. Ipsos research director Alex Bogdan said the findings indicate acute public pessimism across demographic and political lines, with keeping inflation low seen as the primary prerequisite for growth.
Budget pressures mount
Healey is set to outline his proposals in the House of Commons at approximately 12.30pm on Wednesday, immediately after Prime Minister Andy Burnham's weekly questions. The Chancellor must address how to fund £5 billion in defence spending announced in May's Defence Investment Plan without a clear payment plan. Healey previously resigned as defence secretary, arguing the plan provided insufficient funding for the armed forces. Burnham, marking his 100th day in office, has also announced a series of cost-of-living measures that will require funding, including replacing the Carers' Allowance cliff edge with a taper system.
