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IFS delivers tax warning over ‘inconceivable’ cuts

by Daniel Grote on Dec 07, 2012 at 08:36

IFS delivers tax warning over ‘inconceivable’ cuts

The next government is likely to be forced into tax rises due to ‘inconceivable’ spending cuts outlined in the Autumn Statement, according to the Institute for Fiscal Studies (IFS).

IFS director Paul Johnson said that if NHS, schools and overseas aid budgets continued to be protected, cuts in other areas would exceed 30% since 2010/11, a level he deemed ‘inconceivable’, according to reports.

‘There are big choices on health and welfare, crucially, surely, including benefits for pensioners still to be made,’ he said. ‘And it is hard to believe that there won’t be more tax rises to come.’

He added that by 2017/18 around 85% of the government’s austerity measures would be delivered through spending cuts, ahead of its target of a 80:20 split between spending cuts and higher taxes.

1 comment so far. Why not have your say?

Charles Rickards

Dec 07, 2012 at 12:08

Maybe if less money was spent on inqiries to discover the obvious, there would be more money to spend on the necessary.

Reduction in money being sent to corrupt overseas governments may help as would a significant reduction in public sector 'Non' jobs. The government could also level the playing fields by moving public sector employees into NEST at the same rates that have been laid out for the rest of the UK employee population.

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