Will we need big tax rises after the Covid crisis is over?

Ahead of the Budget thoughts are turning to post-crisis tax rises, but how big is the hole in the public finances that needs to be filled? And what sort of taxes could or should fill it? Ben Chu investigates

The Chancellor Rishi Sunak is preparing his budget for 3 March, and briefings suggest he is examining the case for tax increases (REUTERS)

The government has spent tens of billions of pounds in the coronavirus pandemic to protect household incomes, keep businesses afloat and on various public services to cope with the emergency.

It has also paused the collection of some taxes to ease the pressure on private firms.

The result of all this additional spending and collapsing tax revenues is that public borrowing has ballooned to levels not seen since the Second World War.