Budget tax rises may reach £35bn, IFS warns Healey

Summarised from 2 outlets · Updated 13 Oct, 06:38 · Archive

The Institute for Fiscal Studies warns Chancellor John Healey may need to raise taxes by up to £35bn in the October Budget.

The Chancellor is weighing tough choices in advance of the Budget on 28 October between slashing public service spending or raising billions of pounds through tax increases. The Institute for Fiscal Studies has warned John Healey may need to raise taxes by up to £35bn to cover looming spending pressures. These pressures relate to increased defence spending and higher inflation triggered by conflict in the Middle East.

The BBC reported that the Chancellor's fiscal headroom could fall from the forecast £23.6bn to roughly £14bn following a surge in the cost of government borrowing. This decline is attributed to conflict in the Middle East.

The British Retail Consortium warned that further tax hikes would push up prices and cost jobs. The BRC raised these concerns as the Chancellor faced discussions with industry bosses on Downing Street.

How it is being reported

• Budget is a 'critical test' for John Healey as high street grapples with rising costs and 'fragile' confidenceWith John Healey facing crunch talks with industry bosses on Downing Street this morning, the British Retail Consortium (BRC) warned further tax hikes would push up prices and cost jobs.This is Money · 13 Oct, 06:11
• The tax rises that could come in the Budget – and how likely they areJohn Healey faces a tough choice over whether to slash spending on public services or put up taxesThe i Paper · 12 Oct, 15:35

In this story: John Healey · Institute for Fiscal Studies · British Retail Consortium · UK

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