£40bn a year tax rises needed to stop debt spiralling, IFS warns

Taxes may have to rise more than £40bn a year to stop Government borrowing spiralling out of control, the Institute for Fiscal Studies has warned. The think-tank said the deficit this year was set to reach levels not seen outside the two world wars due to Covid-19. In its annual Green Budget, the IFS said over the medium term, taxes would almost certainly have to rise, noting that the Government had increased spending on day-to-day public services by £70bn in response to the pandemic