Chancellor asked how he will pay for tax cuts

THE Chancellor should resist announcing tax cuts at next week’s Budget unless he can show how he will pay for them, the Institute for Fiscal Studies (IFS) has said.

 

Jeremy Hunt faces continued pressure from Conservatives to cut taxes when he delivers what is likely to be his final Budget before the next election, as the overall tax burden approaches record levels. 

The IFS has warned that current post-election spending plans already mean further cuts to unprotected public services – such as local government and the court system – which reducing taxes would only exacerbate.