‘Budget must not increase taxes’

THE Government has been warned not to increase the tax burden in the budget and to slash spending to achieve savings of €3 billion plus.

Raising income taxes risks pushing the economy back into recession when the global recovery is under pressure, warned Bloxham Stockbrokers economist Alan McQuaid.

As the global recovery falters, Mr McQuaid has cut the growth forecast in 2011 to 2.5% from the consensus figure of 3.5%.