Warning of big tax increases to come

Taxes may have to rise by it would be" unwise" for more than £40bn a year to ministers to try to balance prevent Govern men tb orthe books while thee conrowing spiralling out ofomys till needed support, control, a leading economic over the medium term taxes research group has warned. would almost certainly have

The Institute for Fiscal to rise in the years ahead. Studies (IFS) said borrowThe report said the ing this year was already set Government had already to hit levels not seen outside increased spending on daythe two world wars due to-day public services by to the coronavirus £70bn in response to pandemic. the pandemic.

With the econIFS director omy now shrinkPaul Johnson said: in gas a result" For now, with of the lock down borrowing costs measures, it said extremely low, Mr the Government was Sunak shouldn't worry facing a further hit to tax unduly about the debt being revenues which could easaccrued. It is necessary. ily exceed £200bn. "Tax rises, and big ones,

The warning came aflook all but inevitable, ter Chancellor Rishi Sunak though likely not until the told the virtual Conservamiddle years of this decade." tive Party conference that The report also said the the Government had a "saunemployment rate was cred responsibility" to funow likely to increase to ture generations to rebuild around eight per cent – bethe public finances. tween 2.7 and 2.9million

In its "green budget" repeople – in the first half of port, the IFS said that, while 2021.