Reeves’ spring statement has landed like a lead balloon – the left furious over the cuts to disability benefits, while others are calling her deluded after the OBR slashed its growth forecast in half. Now, latest analysis from the economists at the Institute for Fiscal Studies warn if Reeves wants to stick to her fiscal rules, she’ll have to come back for more in the Autumn budget. Months of speculation over tax hikes in the Autumn inbound…
IFS boss Paul Johnson said:
“There is a good chance that economic and fiscal forecasts will deteriorate significantly between now and an autumn Budget. If so, she will need to come back for more, which will likely mean raising taxes even further. That risks months of speculation over what those tax rises might be – a raid on pensions, a wealth tax on the richest, another hike to capital gains tax?”
The IFS analysis points out:
Now the IFS is warning that Rachel Reeves will need to introduce further tax hikes – something she hasn’t ruled out – in the autumn if she’s to meet her fiscal targets. As Guido pointed out last week, the incoming IFS chief, Helen Miller, is no stranger to calling for tax raids. She’s already called for a massive wealth tax and believes capital gains tax should be aligned with income tax rates. Expect plenty more sombre conclusion that higher taxes will be required from the left-wing economists when Miller takes charge…
Sarah Pochin at Reform Scotland’s manifesto launch event: “I really wanted to come on in a Reform tartan burka, but apparently I wasn’t allowed… One day let’s do one of these events not live-streamed. We’ll do all the naughty stuff…”