IFS calls for Chancellor to raise taxes in upcoming Budget

The Institute for Fiscal Studies (IFS) has urged Chancellor Rishi Sunak to use the forthcoming Budget to raise taxes.

The think tank stated that the Chancellor either needs to raise taxes or 'break a fiscal rule' in order to avoid day-to-day spending cuts beyond 2021.

However, the Conservative Party's election manifesto promised not to raise income tax, national insurance or VAT.

The IFS has also called on the Chancellor to abolish Entrepreneurs' Relief and end the 'ludicrously generous tax treatment of capital gains at death and of inherited pension pots'.

Commenting on the matter, Paul Johnson, Director of the IFS, said:

'Rishi Sunak's first Budget could be the most important fiscal event in years. It will set the direction of policy for the next five years. If this new government is going to make radical changes to taxes and spending, this surely is the time to do it.

'There are plenty of tax rises which would both raise revenue from better off individuals and improve the coherence of the tax system.'

We will update you on pertinent Budget announcements.

Internet link: FS publications

Address

Malcolm Piper & Company Limited, Kingsnorth House, Blenheim Way , Birmingham B44 8LS

Contact us today!

0121 382 1000

© 2024 Malcolm Piper & Company Limited. All rights reserved.
Registered in England and Wales. Company registered number 07678988. VAT number 114 8037 37
Registered office: Malcolm Piper & Company Limited, Kingsnorth House, Blenheim Way , Birmingham B44 8LS
Registered with the Institute of Chartered Accountants in England and Wales, number C002905991

We use cookies on this website, you can find more information about cookies here.