Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

IFS: Do you want austerity end or highest taxes in 70 years?

1 Comment
IFS: Do you want austerity end or highest taxes in 70 years?

The Institute for Fiscal Studies (IFS) has painted a grim picture, whereby the only way Philip Hammond can end austerity is to increase tax rates to the highest level for close to 70 years or tap the gilt markets for billions more in cash.

‘On the narrowest possible definition, ‘ending austerity’ as the prime minister has promised, would require the chancellor to find £19 billion of additional public service spending relative to current plans by 2022-23,’ the IFS said. This would equate to more than a penny on income tax.

The think-tank also reiterated its view that there will be no ‘Brexit dividend’, noting: ‘In 2022-23, net savings from contributions to the EU could be less than £1 billion a year, and higher UK administration costs for customs, for example, could easily exceed this saving.’

As the talks between the UK and the EU continue to make little headway, much of this down to intransigence around the Irish border issue and reports are now circulating that the EU’s chief negotiator is open to extending the Brexit transition for a year.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play CEO Tapes: dangerous data and great technology

CEO Tapes: dangerous data and great technology

In the third part of our latest series the debate turns to technology and the huge impact it is having on the fund management industry.

1 Comment Play Quilter CEO on IFAs, robos & his own DB transfer

Quilter CEO on IFAs, robos & his own DB transfer

In the final part of our interview with Paul Feeney, the Quilter chief executive declares that the government has 'left the ring' on savings policy, rounds on robo-advice, and reveals his own experience of the DB transfer market.

Play CEO Tapes: ESG - we need to get better at the 'G'

CEO Tapes: ESG - we need to get better at the 'G'

In the second part of our CEO series, we explore the burgeoning ESG concept with fund bosses outlining how they try to make a difference.

Read More
Wealth Manager on Twitter