Labour can’t rely on proposed tax increases, UK think tank warns

While both of the UK’s major parties failed to address long-term challenges in their general election manifestos, Labour’s tax proposals cannot be relied on because of a combination of errors and overoptimistic assumptions, according to the Institute of Fiscal Studies (IFS).

“The shame of the two big parties’ manifestos is that neither sets out an honest set of choices,” IFS Deputy Director Carl Emmerson told a London press briefing on May 26. The Labour Party would raise public spending to its highest level since the mid-1980s and increase taxes to “record levels in peacetime,” while the Conservative and Unionist Party would preside over “yet more spending cuts alongside a modest increase in the tax burden,” he said. Read more:

My news story for Tax Analysts, May 30 (paywall)