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Financial Directions - Chancellor warned of looming tax shortfall.
(From Financial Director)
Tax increase predicted
The quarterly Ernst & Young ITEM club report has warned Gordon Brown that, due to a struggling global economy and a "structural decline" in tax revenues, he is running out of options to finance his spending plans. ITEM Club economic adviser Professor Peter Spencer suggests that a GBP 7bn revenue shortfall in public sector finances will probably lead to higher taxes in April 2003.
www.ey.com/uk
UK productivity is low
The UK's poor productivity cost over GBP 100bn in 2001, and the UK is falling further behind its main rivals, says Proudfoot Consulting. According to Untapped Potential, a study of 2,700 chief execs, poor planning and management are the key reasons for wasted time. The report found the UK lost 110 days out of 225 in 2001, compared to 86 days lost in the USA, 83 in Germany and 97 in France.
www.proudfoot consulting.com
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