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 >
15/07/2026
Taxpayers urged to get ahead of July self assessment payment deadline
HMRC is reminding millions of self assessment taxpayers to prepare for the 2025 to 2026 tax year second payments on account 31 July deadline.
READ MORE
Government steps up drive to reconnect young people with £1.6 billion
The government is stepping up its efforts to reconnect young people with unclaimed savings in Child Trust Funds (CTFs).
Targeted subsidies are needed for firms to tackle Britain’s NEETs crisis
Targeted subsidies, rather than expensive tax breaks, are the most cost-effective way of supporting employers to get young people into work, according to Resolution Foundation analysis.
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.