UK deficit reduction will need big tax rises after next election, experts warn | Business | The Guardian

Britain’s leading experts on public finances have warned of hefty tax increases in the first budget after the 2015 election as the next government seeks to repair a £64bn deficit caused by a stuttering economy.

The Institute for Fiscal Studies said tax rises of £10bn-12bn might be needed in the next parliament to put deficit reduction back on track and to avoid “eye-watering” cuts in some Whitehall departments that would reduce spending by a third in inflation-adjusted terms between 2010 and 2018.

Paul Johnson, the thinktank’s director, said it was not impossible for the government to achieve its deficit reduction target entirely by cutting departmental spending but it would be “very, very difficult indeed”.

UK deficit reduction will need big tax rises after next election, experts warn | Business | The Guardian.

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