UK households face tax rise of £3,500 a year by next election, finds IFS

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UK households are facing an average tax rise of £3,500 a year by the next election, the country's leading economics thinktank has said — the biggest increase over a parliament on records dating back more than 70 years.

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29 Sep 2023

The Institute for Fiscal Studies (IFS) said that on current forecasts the Conservatives were on track to raise £100bn more annually by 2024 than if taxes as a share of national income had stayed the same as in 2019.

In a damaging report for Rishi Sunak as the Tory party faces growing internal divisions over the issue, the thinktank said tax revenue was on track to amount to about 37% of national income in 2024, up from about 33% four years ago.

Compared with a world in which that shift had not occurred, the IFS said this amounted to an additional £100bn a year for the exchequer – the equivalent to about £3,500 more per household, although some would pay more and others less.

Meanwhile, Sunak is preparing to head to Manchester this weekend for one of the most challenging Tory party annual conferences in years. He is under