Austerity could be more difficult this time round, says Lord King

Former Bank of England governor says politicians must be clear that taxes and mortgage rates will rise

Average earners, rather than the wealthy, will be required to pay significantly higher taxes to finance higher public spending in the UK, the former governor of the Bank of England said on Sunday.

Mervyn King said there isn't enough money there amongst the rich to get it back" to fund the strong case" for some additional public spending, designed to help the economy recover from the pandemic.