The IMF said the government should harmonise VAT for goods that get preferential rates FACUNDO ARRIZABALAGA/EPATaxes will have to rise if the government is to balance the books by the middle of the next decade because spending cuts have gone about as far as they can, the International Monetary Fund has warned. Property taxes, the removal of preferential VAT rates for goods such as pasties, and higher national insurance contributions by the self-employed need to be considered if Britain is to have any chance of eliminating its budget deficit by 2025, the global economic watchdog said in its annual review of the UK. Christine Lagarde: “Continued deficit reduction is critical” Getty ImagesWeak productivity and the increasing health and long-term care demands of an ageing population will make deficit reduction more difficult in future years. Public services such as the NHS may even have to be scaled back or…

Source: The Times December 20, 2017 12:22 UTC