Parties urged to be transparent on tax by IFS

In a recent report, a prominent think tank has criticized the UK's major political parties, including Labour, the Conservatives, Nigel Farage's Reform UK party, and the Greens, for avoiding crucial discussions on public finances in their manifestos. The think tank warned that tax increases are likely in the next five years due to the country's high debt levels, record-high taxes, and strained public services. It highlighted the need for policymakers to make tough decisions, such as raising taxes beyond manifesto promises, implementing spending cuts, or allowing debt to rise further. The Institute for Fiscal Studies (IFS) specifically called out Reform UK for proposing £90bn in tax cuts and £50bn in spending increases without clear funding sources, criticizing their approach as unrealistic and potentially harmful to the economy. The think tank also scrutinized the Green Party's ambitious spending plans, which rely on tax hikes and significant borrowing to finance. The lack of transparency in party manifestos, such as freezing income tax thresholds, was condemned by the IFS for its potential impact on public finances. Political leaders, including Labour's Sir Keir Starmer and Chancellor Rishi Sunak, responded to the IFS analysis with differing views. While Starmer emphasized the need for economic growth and change in policies, Sunak defended the Conservative Party's fully costed manifesto and plans to address unsustainable welfare budget growth post-pandemic. The think tank's assessment underscored the importance of realistic and transparent fiscal policies to navigate the challenges ahead and ensure the sustainability of public services in the UK.