UK Budget 2024: £25bn tax rises needed to avoid austerity, think tank warns
Janusz Pienkowski / Shutterstock.comRachel Reeves could be forced to raise billions of pounds in additional tax revenue if she wishes to avoid public service cuts, a leading think tank has warned.
The Institute for Fiscal Studies (IFS) has claimed £25 billion of tax increases would be needed to keep spending rising with national income.
Both Reeves and Keir Starmer have said their government would not see a return to austerity, but the IFS’ statement suggests such large tax increases could be needed to avoid this.
The think tank’s director Paul Johnson said: “It is easy to think that we face a short-term challenge somewhat artificially created by a particular set of arbitrary fiscal rules. That would be a mistake.
“Pressures on health and pension spending will continue to increase, and revenues from fuel and tobacco duties will fall. That will make remaining on course for current budget balance harder over the course of this parliament. If Ms Reeves does not grasp the nettle on 30 October, it could come back to sting her again before the next election.”
Debates around the levels of taxation in Britain have long been fought in Labour circles, with many of the party’s activists and politicians arguing for higher taxes in order to fund public services.
But critics of this approach point to a record high tax burden faced by many working people in Britain today – and caution against deterring investment with too high taxes.
Budget 2024: FBU warns Tory austerity ‘needs to stop’ to rebuild fire services
The Fire Brigades Union has called on the government to rebuild the nation’s fire service after more than a decade of austerity so fire crews can tackle future risks and build resilience.
Hundreds of firefighters packed the Emmanuel Church near Parliament for what was billed as “the first national trade union rally of its kind since the general election” to demand the new Labour government provide greater funding and provide national standards on training and equipment.
Addressing fire crews from across the country, FBU President Ian Murray said: “For the new Westminster government, it’s now time to deliver.
“The Tories got absolutely walloped – they absolutely deserved it. Everybody in this room knows what they’ve done to the fire and rescue service. The jobs that have been lost, the stations that have been closed. The pay and pensions that have been attacked.
“We now have a new government and whatever you may think of it, it presents to us an opportunity to get an improvement in our fire and rescue service.
“We’re here to demand investment so that those that work in the fire service can do their jobs to the best of their ability as safely as possible, and in doing so keep our communities safe.”
READ MORE: What do trade unions hope to see in Budget 2024?
The Labour-affiliated union outlined ten demands for the Labour government including the creation of a new statutory advisory body, scrapping anti-union legislation, safeguarding collective bargaining and setting national standards to keep firefighters and communities safe.
Speaking to LabourList at of the event, general secretary Matt Wrack said: “You can see firefighters from across the country gathering here.
“They’re here because every single fire service for the past 14 years has faced devastating cuts to the numbers of jobs, fire stations and fire engines under austerity, but also the fire service is fragmented, with different standards applying in different parts of the country.
“We’re here to say to the new government that needs to stop and we need to invest in the fire service.”
Wrack said that the rally had “sent a firm message to the government that the fire service is in crisis”.
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