Falling income tax receipts spell trouble for big government

It would be easy for people to start feeling good about the British economy. Growth has recovered, and we’ve just about clawed our way back to the level of output we hit before the financial crash of 2008.

Employment is rising, inflation is under control and wages are beginning to rise. The shops are busier, and people feel better about their prospects than they have done for years.

There’s just one problem – and it is a big one. The government’s finances are still in a shocking state.

This month we learned that the deficit figures for April were terrible, with [...]

MoneyWeek magazine

Latest issue:

Magazine cover
The future of motoring

Profit as cars get connected

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

FREE REPORT:
What you should really do with your money (2014 Edition)


How to buy and sell penny shares

A beginner's guide to investing in gold

How to invest in British fracking