€30bn of tax rises needed to plug deficit, IFS claims

The Government may have to impose ?30bn of new tax rises in the coming years - equivalent to more than ?1,100 a year for every household in the UK - if it is to meet its fiscal targets, a watchdog has warned.
The Institute for Fiscal Studies said that the Chancellor would need to implement further cuts or tax increases if he intends to eliminate the deficit entirely by the middle of the next decade.However, it added that the tax burden - the level of taxes raised from UK households as a percentage of gross domestic product - was already heading for its highest level since the 1950s, raising questions about how willing Britons will be to pay more taxes.
€30bn of tax rises needed to plug deficit, IFS claims

Chancellor Philip Hammond is being warned that ?30bn in new tax may be needed to plug the deficit
The warnings came a day after Philip Hammond delivered the first spring statement, updating the official public finance figures.Although there were no major changes in policy, the IFS warned that the scale of austerity approaching in the coming years would still prove painful for many families.
In particular, it pointed out that 75% of the benefits pain had yet to be felt, and that families at the lower end of the income spectrum would face the biggest cuts in the coming years.
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€30bn of tax rises needed to plug deficit, IFS claims

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Paul Johnson, director of the IFS, also pointed out that the UK was reliant on high income taxpayers for a growing chunk of its revenues, making it particularly exposed if some decided to leave the country."If high-paid jobs - and EU citizens, who are well represented among high earners in the UK - relocate elsewhere, the consequences for the Exchequer will be severe," he said.
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