There is “no room” for tax cuts or spending increases before an election, a public finances think tank warns.
In the Institute for Fiscal Studies’ (IFS) Green Budget, its annual health check of UK tax, spend and borrowing, it says the country is “in a horrible fiscal bind”.
It warns “ill-timed” pre-election tax cuts could prove “unsustainable”.
It warns “ill-timed” pre-election tax cuts could prove “unsustainable”.
The IFS calculates that the tax revenue raised by the prime minister’s decision to freeze tax thresholds for six years is effectively a tax rise worth £52bn a year by 2028.
The very high rates of inflation since the policy was announced have pushed up the original forecast of £8bn a year for revenue raised in 2026.
The institute warns that pre-election tax cuts could prove “unsustainable” and “ultimately mean a protracted recession” as interest rates are forced even higher.
The next general election must be held by January 2025.
There is “no room” for tax cuts or spending increases before an election, a public finances think tank warns.
It warns “ill-timed” pre-election tax cuts could prove “unsustainable”.
In the Institute for Fiscal Studies’ (IFS) Green Budget, its annual health check of UK tax, spend and borrowing, it says the country is “in a horrible fiscal bind”.
The IFS calculates that the tax revenue raised by the prime minister’s decision to freeze tax thresholds for six years is effectively a tax rise worth £52bn a year by 2028.
It warns “ill-timed” pre-election tax cuts could prove “unsustainable”.
It warns “ill-timed” pre-election tax cuts could prove “unsustainable”.
The IFS calculates that the tax revenue raised by the prime minister’s decision to freeze tax thresholds for six years is effectively a tax rise worth £52bn a year by 2028.
The very high rates of inflation since the policy was announced have pushed up the original forecast of £8bn a year for revenue raised in 2026.
The institute warns that pre-election tax cuts could prove “unsustainable” and “ultimately mean a protracted recession” as interest rates are forced even higher.
The next general election must be held by January 2025.
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