£40bil­lion of ex­tra tax per year warn­ing

Daily Mirror - - NEWS -

TAX hikes of more than £40bil­lion a year may be needed to pre­vent Gov­ern­ment bor­row­ing spi­ralling out of con­trol, an eco­nomic think-tank warns.

The In­sti­tute for Fis­cal Stud­ies says bor­row­ing this year is al­ready set to hit lev­els not seen out­side the two world wars.

Paul John­son, IFS di­rec­tor, said Rishi Su­nak should not “worry un­duly” about debt now due to the low cost of bor­row­ing.

But he added: “None of this will be enough to pro­tect the econ­omy into the medium run.

“Tax rises, and big ones, look... in­evitable, though likely not un­til the mid­dle years of this decade.”

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