Experts tell Brown taxes must go up

Gordon Brown today faced a credibility gap over his Budget amid warnings from financial experts and voters that taxes will have to rise.

The independent Institute for Fiscal Studies warned the Government would be forced to push up taxes by £13billion within two years. It said the revenue gap would have to be met by another big increase in borrowing, big spending cuts - or tax rises equivalent to four pence on income tax.

The first post-Budget opinion poll found that most voters say the Chancellor is doing a good job but more believe he is hiding the truth over tax.

The poll, by YouGov for the Daily Telegraph, found 51 per cent approving Mr Brown's handling of the economy against 31 per cent dissatisfied. Yet 67 per cent believed he knew taxes would have to rise to pay for his ambitious spending plans but was delaying it until the election is over.