Kevin Schofield is Politics Editor of HuffPost UK.
The Institute for Fiscal Studies issued its grim warning as the chancellor prepares to deliver her first Budget on October 30.“There will be no return to austerity. Conservative austerity was a destructive choice for our public services – and for investment and growth too.”
“Taxes are at a historic high and yet debt is high, rising and only barely forecast to decline in five years’ time, while many public services are showing obvious signs of strain,” the IFS said.Reeves will need to find around £30 billion by 2028-29 to fund pay settlements for public sector workers and avoid future spending cuts, their report said.
“Given the pledges she has made not to raise the main rates of income tax and corporation tax, or to increase national insurance or VAT at all, she might struggle to implement a tax rise on that scale. On BBC Breakfast this morning, business secretary Jonathan Reynolds said: “The IFS are right to say what we’ve inherited is unenviable, they are right to say the previous government’s sums didn’t add up, so that’s a challenge as you come in having to reconcile that situation.“But of course we will stick to those manifesto commitments, and of course the chancellor has been absolutely clear she will put forward a Budget for growth.
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