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Wait until after the election

12 February 2013 / Allison Plager
Issue: 4390 / Categories: Comment & Analysis , Admin
Don’t expect tax rises for a couple of years, says the IFS. ALLISON PLAGER reports


  • Tax hikes tend to happen just after a general election.
  • Should the richest pay more tax?
  • Which taxes should be increased?
  • No clear strategy.

Swingeing tax rises could be on their way after the general election to pay for the unplanned extended borrowing the coalition government will have to make in the next two years suggested the Institute of Fiscal Studies in its 2013 Green Budget funded by the Nuffield Foundation and published on 6 February.

The research provides an independent check on government assumptions. It examines various issues faced by the chancellor George Osborne from the global economy to public spending to tax. Its findings included:

  • based on current plans public service spending in “unprotected” government departments could fall by one-third between...

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