The UK’s main parties have “ducked” addressing the challenges facing the public finances in the election campaign and the ignored the “painful choices” those imply, according to the Institute for Fiscal Studies (IFS).
The leading economic research group warned it would be a “considerable surprise” if tax rises did not have to be enacted in the next parliament
In an analysis of the main parties’ manifestos, the IFS said debt was at its highest level in 60 years.
At the same time, the tax burden is edging up close to record highs as the public purse faces bigger increases in debt interest spending than allowed for, and growing welfare spending.
With Labour and the Conservatives committed to similar fiscal rules, the IFS warns: “Despite these high tax levels, spending on many public services will likely need to be cut over the next five years if government debt is not to ratchet ever upwards or unless taxes are increased further.”
Paul Johnson, director of the IFS, also criticised Labour and the Conservatives for both ruling out increases to VAT, income tax and National Insurance.
“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,” he said.
