Taxes are set to rise for cash-strapped Brits who are already facing unemployment and struggling to get credit, according to PricewaterhouseCoopers.
John Sison, head of the government and public spending group at PricewaterhouseCoopers (PwC), said that tax increases were likely to be implemented in order to deal with the public sector deficit.
Figures released by the Office for National Statistics (ONS) reveal that the public sector deficit was £11.3 billion in September 2009, compared with a £7.6 billion in September 2008.
Mr Sison explained that selling public assets will not deal with government debt.
He added: "You either have to raise taxes, or decrease spending, or a combination of the two.
"If they do anything on tax it'll be a mixture of the big three taxes - national insurance, income tax and VAT."
Meanwhile, research from the Centre for Policy Studies (CPS) revealed that government debt stands at £2.2 trillion.
