As many economists start to turn vaguely positive on the UK economy we may be on the verge of a recovery in business levels. While this news has, and will continue to be, well received by business leaders and the stock market, there are still severe concerns as to how Gordon Brown will pay back the national debt which is literally crippling the UK budget.
While many are awaiting the announcement of this month's budget, it is the short to medium term situation which is beginning to cause most concern amongst experts. Nobody is quite sure how much UK debt has been accumulated over the last 12 months as Gordon Brown has been literally throwing money at the system and UK banking companies. Despite repeated requests by opposition parties and business leaders, the Treasury has been unable to confirm the exact position and balance sheet of the UK.
Whatever the exact figure may be there is no doubt that UK taxes will increase in the short to medium term with some analysts suggesting this could cause a significant drag on the recovery of the UK economy. Until we know the exact balance sheet of the UK it is impossible to suggest any course of action and when consumers and businesses may be hit by increased tax bombshells.