It said in total, taxes could soar to £60billion to prevent a new wave of austerity fuelled by the crisis. The think tank said the Chancellor should start with a 12-month plan on where extra spending will be needed. The IFS predicts spending could rise from an increase of 39.8% at present to 41% by 2025, equivalent to £60billion. That would equate to around 6p or 7p on every pound earned in extra income tax although this would depend on what tax band it's applied to. Economists have already argued that any tax rises should be through either income tax, national insurance or VAT changes, as they produce the biggest results.

Source: Daily Mirror September 29, 2020 13:34 UTC