Sunak set to preside over biggest round of tax rises since World War II, experts say

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The current parliament will have presided over the biggest round of tax increases since at least World War II, experts have said.

By the time of the next general election, taxes will likely have risen to around 37% of national income, according to analysis by the Institute for Fiscal Studies (IFS).

The group Well-respected think tank said the rise equates to around £3,500 more per household, although in reality this amount will not be shared equally.

Since comparable records began in the years 1950, no parliament has seen a greater rise in taxes.

Conservative MPs have long complained about the reluctance of Rishi Sunak and Chancellor Jeremy Hunt to consider tax cuts, with backbench complaints about current tax levels.

It is not, for the most part , a direct consequence of the pandemic. Rather, it reflects decisions to increase public spending, partly driven by demographic change, pressures on health services and some relaxation of austerity.

Ben Zaranko, IFS

Both men instead stressed the need for fiscal responsibility amid continued high inflation.

But Mr Hunt will likely face under pressure to announce tax cuts, if not in the coming fall declaration, then at least before the next national vote.

Ben Zaranko, senior research economist at the IFS, said the pandemic could not be blamed on rising tax levels and predicted that a high-tax approach was here to stay, whoever wins the next general election.

“It is inconceivable that this parliament will turn out to be anything other than a tax-raising parliament – ​​and it appears to be the largest tax-raising parliament since at least the Second World War,” he said. /p>

“This is not, for the most part, a direct consequence of the pandemic. Rather, it reflects decisions to increase government spending, partly driven by changing demographics, pressures on health services and some relaxation of austerity.

“It is likely that this Parliament will mark a decisive and permanent change. to an economy with higher taxes. »

This was echoed by Mark Franks, the director of welfare at the Nuffield Foundation.

He said: “There will be a lot of pressure in the next parliaments . further increase taxes to meet growth...