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Face of British workers pay an extra ?1, 200 fee.

Prediction by the well-respected economic forecaster will come as a blow to the Chancellor, who today describes how the coalition plans to reduce public expenditure of ￡ 83bn per year from 2014/2015.Réductions deep for police, justice and business services as well as the welfare Bill should.

Speaking on the eve of the comprehensive spending review, Ray Barrell, Director a.i. of NIESR, said: "there are very few likely reached the magnitude of the reductions that they recherchent.Taxes must rise at the end of Parliament..." Plan B is very simple.You implemented by 2pc income tax of GDP.?

He added that 2pc GDP amounted to "approximately ￡ 36bn"-￡ 1,200 for each person working in United Kingdom .the Bill is current income tax of ￡ 150bn, equivalent to 5,000 pounds sterling per adult work.

Mr. Barrell has warned that fees may increase further if the Chancellor is to meet its "tax mandate" to eliminate the structural deficit of ￡ 109bn country - annual costs which will remain once the economy fully restored 2016 - 2015.

NIESR forecast, the Chancellor will miss the target by ￡ 26. 6bn, although the agency responsible for budget official prediction is that it will hit its term of one year earlier.

Mr. Barrell said: "the political reality is that they can hit the [cutting spending]" projections... We believe that they will have a half to two-thirds of what they are after it should be a reaction to that. ""

Prediction of NIESR pain more households came as the Bank of England Governor Mervyn King said the end of the "nice [not constantly expansionist inflationary] decade" and invented a new acronym, saying "the next decade is likely to be a sober decade - a decade of savings, ordered budgets and rebalance fair".

"The path of the economy will be bumpy," he told the Chamber of commerce of Black Country last night. "The next decade will be more enjoyable.History suggests that after a financial crisis that the hangover lasts for a period of time... a sober decade perhaps not fun, but it is necessary to our economic health.?

NIESR added that households will be feeling the squeeze this year and next year as revenue fail to keep pace with inflation, 0. 8pc fall in real terms this year and 0. 6pc in 2011 .the ' Institute provides the economy to grow by 1. 6pc in 2010 and 2011 and 2012.Il 2pc is not predicting a recession double, but said that there is a chance for one person in five further contraction.

Mr. Barrell said that he "absolutely agree with the objective of the budget deficit of [of the Chancellor]", but said the scale of expenditure reductions may be "undue" and raising taxes instead of this would be préférable.Dans part of Mr. Osborne, four-fifths of the fiscal consolidation will come from dépenses.M reductions.Barrell said the optimal split would be three-fiths cuts and two fifth tax rises - the same balance advocated by the new Chancellor Shadow, Alan Johnson.

If the economy weakens, the Government "should undertake a temporary fiscal stimulus" in introducing a "temporary holiday insurance or tax refunds," Mr Barrell ajouté.Il said the 36bn ￡ additional tax to reduce deficit need come not only benefits revenu.Réductions taxes, or other direct - such as national insurance or right of stamp - tax increases public sector pension savings could help to raise funds.

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