NEWS ELECTION 2024

IFS warns next government over tax rises and cuts

The Institute for Fiscal Studies (IFS), has warned that next government faces a The Institute for Fiscal Studies (IFS), has warned that next government faces a stark choice regarding tax rises, spending cuts, or increased borrowing beyond their manifesto pledges.

9 months ago   1 minute read    1,348 views

The image for IFS warns next government over tax rises and cuts
 
Share            Listen to the story

The Institute for Fiscal Studies (IFS), has warned that next government faces a stark choice regarding tax rises, spending cuts, or increased borrowing beyond their manifesto pledges.

The implications of these choices are set to impact the country's public services and financial stability.


  Other Trending Stories

    According to IFS director Paul Johnson, both Labour and the Conservatives have maintained a "conspiracy of silence" on their spending plans, leaving voters in a "knowledge vacuum" ahead of the General Election on July 4.

    Mr Johnson criticized Reform UK and the Green Party for proposing "wholly unattainable" radical reforms that could further complicate the fiscal landscape.

    He pointed out that despite high tax levels in the UK, public services are struggling to meet demands.

    The country is facing challenges such as a significant increase in debt interest spending, growth in the welfare budget, rising health expenditure, and the need to transition to net zero emissions.

    The IFS analysis indicates that taxes are already at the "highest level ever" in the UK, yet further increases or spending cuts may be necessary in the coming years to address the financial imbalance.

    Mr. Johnson emphasized the need for primary surpluses to prevent the debt from spiraling upwards, highlighting the government's responsibility to collect more in revenue than it spends.

    The IFS also cautioned that the manifestos of the main parties ignore the substantial challenges at hand, indicating that tough decisions on the size and shape of the state will need to be made, likely resulting in higher taxes or reduced public services.

    You've viewed 1 stories so far!

    All About Newtown is an independent not-for-profit online news and information service for the town of Newtown in Mid Wales. We provide ad-free content, so rely on reader subscriptions and donations to run.

      Donate via PayPal

    Related or similar stories based on this one

    Image for the article Call to bring forward council tax shake-up rejected
    Call to bring forward council tax shake-up rejected

    8 months ago

    Image for the article Help shape the future of council tax in Wales
    Help shape the future of council tax in Wales

    1 year ago

    Image for the article Homebuyers to benefit from new tax rules
    Homebuyers to benefit from new tax rules

    2 years ago

    Business of the Week
    Garth Owen Stores

    Garth Owen

    Follow us

    Connect with us on Facebook, X (formerly Twitter), Instagram and Google News

         

    Trending
    Donate to us

    We're a not-for-profit community interest company and have no corporate owners. We'd appreciate anything you can give to keep us providing free content.

      Donate via PayPal
    Upcoming Events
    Canal Forum

    04/04/25 02:30pm

    ARRIVAL - The Hits of ABBA

    05/04/25 02:30pm

    ARRIVAL - The Hits of ABBA

    05/04/25 07:30pm

    Latest Stories
    See what's on next week in our area (W14)

    3 days ago

    Calls to sack education chief after damming report

    6 days ago

    Secondary school standards risk

    1 week ago