Brown 'will raise tax' to fill a £22bn shortfall

Gordon Brown will be forced to raise taxes to fill a £22billion budget black hole around the time of the next election, leading economists claimed today.

The warning, from the respected Nat ional Institute for Economic and Social Research, added to pressure on the Chancellor as he prepared his Pre-Budget Report.

In it he is expected to signal tax rises with homeowners, motorists and hol iday- makers among those in line to pay more.

Mr Brown could bring in new property taxes, raising billions. Environmental campaigners are pressing for higher "green taxes" including a doubling in air passenger duty to £40 on longhaul flights and £10 within Europe.

Motorists could suffer with more road-pricing measures. Nat ional insurance could increase again for middle and higher earners. But Tony Blair may press to limit the tax rises for fear of the political fall-out.

Mr Brown's chief economic adviser Ed Balls rejected the warning. He said the Treasury would stick to its "disciplined approach to the management of public finances".