General election 2024: Conservative and Labor ‘conspiracy of silence’ on tax plans contained in manifestos, says think tank IFS | Economic news

The main parties have “hidden and dodged” their real choices on tax and spending for the next parliament, at a time when difficult decisions must be made, says the Institute for Fiscal Studies, which also gives its view view on Reform UK, the Lib Dems. and the Greens.

Voters have been left in the dark about how the main parties will be able to finance their spending commitments, a respected think tank has said, offering only a “thin mush”.

The Institute for Fiscal Studies (IFS) has attacked what it has long described as a “conspiracy of silence” by the Conservatives and Labor over how they could tackle the challenges they face. identify, such as reducing NHS waiting lists.

Launching his report on the crucial documents, IFS director Paul Johnson warned that spending on many public services would likely have to be cut in the next parliamentary term unless public debt increases or increases. that taxes do not increase further.

He refuted claims that the manifestos were fully costed, arguing that the two men faced a “difficult choice” between raising taxes beyond their promises, cutting spending or increasing borrowing.

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Mr Johnson highlighted the pressure from a 60-year high in public debt, at a time of near-record tax burdens.

This is largely attributable to the £50 billion a year increase in debt interest costs compared to forecasts, he said, as well as the increase in the social budget to the aftermath of the COVID pandemic and subsequent cost of living crisis. Russia’s invasion of Ukraine.

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“We have rising health care spending, a defense budget that, for the first time in decades, is likely to increase rather than decrease, as well as the reality of demographic change and the need to move to net zero emissions,” he said. Mr. Johnson said.

“Add to that weak growth and the after-effects of the pandemic and the energy price crisis and you get a truly toxic mix when it comes to public finances.”

“These bare facts are largely ignored by both major parties in their platforms,” he said, calling the information presented to voters “vacuous of knowledge.”

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“Due to their reluctance to address real challenges, neither major party is making serious new proposals to raise taxes,” Mr Johnson said.

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“In line with their conspiracy of silence, both are remaining completely silent about their commitment to a £10 billion-a-year tax rise through a further three years of freezing tax allowances and thresholds on natural persons.

“Both have tied their hands on income tax, NICs (national insurance contributions), VAT and corporation tax. The Conservatives have a long list of other tax increases and reforms they would not make. Labor has ruled out more tax options since the manifestos were published.

“Taken literally, Labor’s promise not to raise taxes on workers” virtually rules out any tax increases. There is no tax paid exclusively by those who do not work. Who knows what this commitment is really supposed to mean,” he concluded.

And the other parties?

The IFS said the Liberal Democrats had stronger tax and spend policies than Labor or the Conservatives.

It also determined that Reform UK and the Greens were proposing much higher figures, but saying what they were proposing was “totally unworkable”, thereby helping to “poison the entire political debate”.

Mr Johnson concluded: “The choices before us are difficult. High taxes, high debt, struggling public services, make them that way.

“The pressures exerted in matters of health, defence, social protection and aging will not make them easier. This is not a reason to hide the choices or to dodge them. Quite the contrary. However, they have been hidden and dodged.”