Higher taxes and harsher cuts on budget horizon

HIGHER taxes and harsher cuts are on the way after Finance Minister Brian Lenihan insisted the Government will be “relentless” in seeking more savings than expected in the next budget.

Mr Lenihan revealed the previously indicated cuts of €3 billion is merely “indicative” and “there is scope for the Government to increase that figure if they are so minded”.

His revelation was in direct contradiction to a commitment given by Taoiseach Brian Cowen hours earlier that the €3bn target remains.