One of the forthcoming election's primary battlegrounds will be the budget deficit. Despite continuing political rhetoric and press coverage about 'austerity', government spending has continued to rise. The coalition's previously stated aim of cutting the deficit to £40bn by this year has been missed, and missed by some margin - the latest figure is almost £100bn. This has not been helped by the unexpected weakness in income tax receipts (a mainstay of government income). Compared to 2014 forecasts, the Office for Budget Responsibility (OBR) calculates a £25bn shortfall in income tax revenues.
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