It faces unprecedented pressure from a sharp rise in the cost of energy and basics such as corn oil and wheat.

Thousands would have faced a sharp rise in probate costs under proposals described by critics as a ' stealth death tax'.

Second, there has been a sharp rise in algorithmic trading, where the decisions over purchase or sale of financial assets are determined by mathematical modelling.

The 2007 figures will also reflect a sharp rise in mortgage arrears.

The possible adverse effect of a sharp rise in capital gains tax remains a concern.