Unit 2: The effect of the recession on the govenment's budget

The BBC reports a sharp deterioration in government income fron tax revenues

http://news.bbc.co.uk/1/hi/uk_politics/7900483.stm video
http://news.bbc.co.uk/1/hi/business/7898871.stm article

More detail from this tutor2u powerpoint presentation

http://www.tutor2u.net/economics/presentations/recession-tax.ppt#256,1,Recession

a) Why has government revenue from taxation decreased?
b) What will happen to govt expenditure during the recession?
c) What then is you prediction for the govt's finances as the economy experiences the worse of the recession?