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 [...]

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