Market leading insight for tax experts
View online issue

Press watch: ‘IFS warns of £9bn tax rises after election’

printer Mail

‘Tax rises of up to £9bn – equal to a 2p increase in the basic rate of income tax – could be imposed after the next general election to limit further cuts in public spending, experts warned on Thursday.

‘The scale of the spending cuts scheduled for 2015 in George Osborne's budget will be so difficult to implement an incoming government would have little alternative but to raise taxes or borrow more, the Institute for Fiscal Studies said …

‘Osborne plans to keep spending at its current level until 2015 before a second wave of steep cuts takes effect up to 2018. The IFS said the government was delaying some austerity measures until after 2015, leaving the next government to bridge a large gap in Whitehall's finances. Rowena Crawford of the IFS said politicians were likely to prefer tax rises to avoid making further spending cuts. "That is after an election and it is much more possible that a future government will prefer to increase taxes instead," she said.’

The Guardian, 22 March 2013