Chancellor May Need £16 Billion More in Tax Increases to Meet Government Promises: IFS

Chancellor of the Exchequer Rachel Reeves may need to raise an additional £16 billion in taxes in order to meet government pledges, the Institute for Fiscal Studies (IFS) has estimated. The think tank said in its report published on Thursday that this would be needed in addition to the £9 billion in tax rises from measures Labour had set out in its manifesto, bringing the total to £25 billion. The chancellor has said ahead of the Oct. 30 Budget that there will be “tough decisions” made, but that there would be no return to austerity. Reeves’s Budget will come within a series of party-imposed restrictions, with the new government committed to avoiding cuts to public services, and while pledging not to raise income tax or corporation tax, or to increase National Insurance and VAT. Taxes are also at a historic high....