Sir Martin Sorrell has poured cold water on the idea of a 'roaring twenties' and warned that tax rises could dampen economic growth over the coming decade.
The advertising tycoon believes a rapid rebound is set to take place over the next 18 months but that by 2023 businesses could be hamstrung by hikes in corporation and income tax as governments tackle the huge debt accumulated to fight the coronavirus pandemic.
Sorrell said: 'The chickens may well come home to roost in 2023, given the debt burden that most countries will have and the tax increases that will have to be implemented.
'We have to pay the price for the coronavirus measures, taxes will impact the wider economy. The money was wisely spent but at some point the budgets have to be balanced.'
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Global debt climbed to an all-time high of 202trillion last year and is expected to rise further in 2021. In the UK, government debt currently stands at 2.14trillion and in the US the figure is 20trillion.