Govt borrowing soars to £60bn-papers

Borrowing has risen to £60bn it was reported last night as tax revenues collapse and some economists predict the level of government borrowing could reach £110bn by 2011. The triple shocks of the financial markets crash, housing slump and rising inflation will cause a drastic reduction in the billions of pounds that the Treasury normally receives in stamp duty, corporation tax and income tax, combined with the need to spend more on benefits. The Times also reports Alistair Darling will shortly confirm new, “flexible” financial rules will be introduced to allow the Government to borrow a...