UK's Budget Deficit to be Worse Than Predicted

The budget deficit is at least 2.7% more than what was being expected in the pre budget announcements by the Chancellor Alistair Darling.Darling (seen in picture) who will be presenting the budget later in the month said the recession in UK has been more severe than expected.

In Fx Trading, the pound has tumbled amid these persistent economic problems here.

The £39bn (approx 58bn US dollars) deficit could be financed by either raising the tax limits or by putting a five-year real freeze in total public spending.The Institute for Fiscal Studies (IFS) estimates that taxes in Britain will have to rise by at least £20bn a year to cover record borrowing.

Noticeably, at the last week Summit of the leaders of the world's largest economies, a deal worth $1.1 trillion (£681bn) was reached at to tackle the global financial crisis.

The British Prime Minister Gordon Brown will be meeting the chancellor and the Bank of England governor to discuss about measures agreed at the concluded G20 summit.The prime Minister here is hopeful the consensus reached at the meeting will help build the dwindling confidence in the banks, and will make a difference to the lives and to the aspirations of families and businesses in the UK.


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