United Kingdom - Latest figures show widening gap between tax take and government spending

The gap between the tax take and government spending is widening.

The latest figures from the Department of Finance, which were released today, show that the exchequer had a deficit of €3.1 billion for the first nine months of the year.

This is ten times more than the deficit for the same period last year, and €2.5 billion more than the budgeted deficit for the whole year.

The four main taxes - VAT, excise duty and income and corporation tax - are as expected in the budget, but the slowdown in the property market has hit stamp duty.

Finance Minister Brian Cowen said that the figures point to a healthy economy, but he again warned of the need for prudent fiscal policies.