"If net migration continues to fall, or stabilises at a level significantly below official forecasts, this would be likely to materially hit (economic) growth and overall tax revenues, the IFS warned. The chancellor unveiled a 40bn tax rise in her 2024 Budget in a bid to boost public services and grow the economy."
"Labour's crackdown on immigration could force Rachel Reeves to raise taxes, the UK's most highly-respected think tank has warned. The Institute for Fiscal Studies warned low immigration levels could lead to a shortfall in tax receipts and trigger another tough Autumn Budget later this year."
The Institute for Fiscal Studies, the UK's most respected think tank, has cautioned that declining immigration levels could create a significant shortfall in tax receipts. If net migration falls or stabilizes below official forecasts, economic growth and overall tax revenues would likely suffer materially. This warning suggests Chancellor Rachel Reeves may face difficult choices between raising taxes further or reducing public spending to maintain fiscal balance. The alert comes ahead of her spring statement to Parliament, which will outline the UK economy's status and government spending implications. Reeves previously announced substantial tax increases totaling 66 billion pounds across her 2024 and Autumn budgets to support public services and economic growth.
Read at www.independent.co.uk
Unable to calculate read time
Collection
[
|
...
]