The Institute for Fiscal Studies (IFS) has warned that tax rises will be difficult to avoid in the next five years.
The IFS recently stated that it will be a ‘considerable surprise’ if taxes do not increase over the coming five years.
According to the IFS, whoever wins the upcoming General Election faces a ‘trilemma’ - raise taxes by more than previously indicated in party manifestos, implement cuts to some areas of spending or borrow more and allow debt to rise for longer.
Paul Johnson, Director of the IFS, said: ‘Huge decisions over the size and shape of the state will need to be taken, that those decisions will, in all likelihood, mean either higher taxes or worse public services.
‘Despite a damaging rush to rule out increases in all sorts of tax rates, it will be a considerable surprise if no other taxes are increased over the next five years.’
27/06/2024
View all >
08/10/2025
MTD for ITSA exemption applications
HMRC has opened up a service for landlords and self-employed to apply for exemption from Making Tax Digital (MTD) for Income Tax phase one.
READ MORE
HMRC to resume taking tax from accounts
HMRC has resumed its programme allowing direct recovery of money from debtors’ bank accounts.
Long-term sickness blighting UK economy
The UK must tackle its status as the sick man of the G7 if it wants to grow the economy, warns the British Chambers of Commerce (BCC).
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.