Business group warns tax rises will be 'difficult to avoid' over next five years

The Institute for Fiscal Studies (IFS) has warned that tax rises will be difficult to avoid in the next five years.

25 Jun 2024

 The Institute for Fiscal Studies (IFS) has warned that tax rises will be difficult to avoid in the next five years.

The IFS recently stated that it will be a 'considerable surprise' if taxes do not increase over the coming five years.

According to the IFS, whoever wins the upcoming General Election faces a 'trilemma' - raise taxes by more than previously indicated in party manifestos, implement cuts to some areas of spending or borrow more and allow debt to rise for longer.

Paul Johnson, Director of the IFS, said: 'Huge decisions over the size and shape of the state will need to be taken, that those decisions will, in all likelihood, mean either higher taxes or worse public services.

'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.' 

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