Taxes rises of £30bn ‘needed by mid-2020s’ to cut deficit

Latest news

    ShoppersImage copyright Getty Images

    Taxes will need to rise by £30bn per year by the mid-2020s if the government wants to keep spending constant and balance its books, a think tank warns.

    The Institute for Fiscal Studies added that dismal productivity, earnings and GDP growth had become the “new normal”.

    It comes after the chancellor unveiled upgraded growth and borrowing forecasts in the Spring Statement on Tuesday.

    Philip Hammond said the UK economy had reached a turning point and there was “light at the end of the tunnel”.

    The chancellor told MPs growth was now forecast to be 1.5% in 2018, up from 1.4% forecast by the Office for Budget Responsibility in November.

    Debt is also expected to fall as a share of GDP from 2018-19, the first drop in 17 years.

    However, Paul Johnson, director of the Institute for Fiscal Studies (IFS), said that “nothing much” had changed on Tuesday.

    He said the good news on borrowing would “largely wash out” over the next few years, while the structural deficit in 2019-20 would be almost unchanged.

    He also said the latest growth projections remained “very subdued”.

    “The reality of the economic and fiscal challenges facing us ought to be at the very top of the news agenda.

    “And I mean the reality, not the spin and bluster of politicians on all sides pretending there are easy solutions.”

    View the original article: http://www.bbc.co.uk/news/business-43397798

    http://www.bbc.co.uk/news/business-43397798

    In the same category are

    Israel blames Syria for Russian aircrew deaths but ‘expresses sorrow’ Image copyright Getty Images Image caption The Il-20 aircraft was returning to a Russian base on the north-western coast of Syria (file photo) Isr...
    Ben Stokes and Alex Hales charged with bringing game into disrepute Ben Stokes and Alex Hales have been charged with bringing the game into disrepute by the England and Wales Cricket Board following an incident outsid...
    Coventry police black males advice is ‘inflammatory’ Image copyright West Midlands Police Image caption Fidel Glasgow died after being stabbed outside a club Police advice to pubs to look out for "yo...
    Mini plant to close for a month post-Brexit Image copyright Getty Images The Mini factory in Oxford will shut down for a month after Brexit at the end of March to minimise disruption in case o...
    The Emmy-winning TV shows you may never have heard of Image copyright Getty Images Image caption Some of the cast and creators of The Americans It's no surprise shows like Game of Thrones, The Crown a...
    Emmy Awards 2018: Matthew Rhys surprises fans with accent Image copyright Reuters Image caption Matthew Rhys accepting his Emmy in Los Angeles Welsh actor Matthew Rhys has won an Emmy for his performance ...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.