Tax rises likely before next election
Economists say weak growth will force tougher fiscal choices
Taxes are likely to rise again before the next UK general election, according to economists surveyed by the Financial Times, who argue that weak growth and pressure to increase public spending leave the government with limited room for manoeuvre.
Linda Yueh, Adjunct Professor at London Business School, said the government’s “invest-to-grow” approach could begin to pay off from 2026 as public investment and planning reforms take effect. Even so, most economists doubt the economy will grow strongly enough for households to feel materially better off.
Almost two-thirds of respondents expect tax rises before the election due by 2029, despite falling inflation and interest rates. Many warned that political pressures, optimistic growth assumptions and a fragile labour market make further fiscal tightening increasingly likely.
Read the full article here - Taxes will need to rise before next UK election, economists predict