IFS criticises main parties' approach to tax

The Institute for Fiscal Studies (IFS) has said in a statement that the UK's main political parties must be clearer in their pledges to tax and spending.

IFS director Paul Johnson said: "Debt is at its highest level in more than 60 years. Taxes are at near enough the highest ever level seen in the UK. They have risen more over this parliament than over any other since the second world war. 

"Spending has also risen: the fourth largest increase per year in public spending as a share of national income, and biggest under a Conservative government.

"Yet public services are visibly struggling. Despite these high tax levels, spending on many public services will likely need to be cut over the next five years if government debt is not to ratchet ever upwards or unless taxes are increased further."

He said that a £50 billion a year increase in debt public interest spending "bear much of the responsibility."

Johnson added that the "two main parties [...] have singularly failed even to acknowledge some of the most important issues and choices to have faced us for a very long time."

In regards to tax and spending, Johnson and the IFS said that the UK has the highest debt level for more than 60 years, taxes are at a record and spending has swelled - but public services are "visibly struggling".

Johnson also criticised both Labour and the Conservative Party for ruling out increases to income tax, National Insurance and VAT.

In response to the IFS analysis, Labour leader Sir Keir Starmer told the BBC: "The economy has flatlined for 14 years and that is exactly what we are wanting to change and that's why we have set out plans for growth in our manifesto."

IFS researchers and Johnson delivered the analysis of the parties' manifestos at a live-streamed press briefing today (24 June).