Say goodbye to tax cuts?

‘We are in a horrible fiscal bind’ says the Institute for Fiscal Studies this morning, as it publishes its Green Budget report ahead of the Autumn Statement. A combination of stagnant growth, stubborn inflation, rising debt interest payments and a tax burden at a postwar high has produced a grim assessment of the UK economy, which the IFS suggests will worsen in the coming years, as ‘huge fiscal pressures’ around the National Health Service and public sector pensions increase (more on that here). The report’s conclusion is that now is not the time to raise taxes. It would make terrifying reading for a Conservative prime minister and chancellor if they weren’t already aware of the dire financial state we’re in.

Jeremy Hunt has been clear for months that the Autumn Statement will not include any major tax cuts.