Budget tax rises may be ‘fiscal fiction’ as pain delayed for election year, IFS warns

Thinktank predicts backloading may force Labour to abandon tax rises or spending cuts Rachel Reeves has positioned Labour to fight the next general election with tax increases and spending cuts that resemble a work of “fiscal fiction”, an analysis by leading economists has warned.In its verdict on the chancellor’s budget, the Institute for Fiscal Studies (IFS) said the chancellor had chosen a high-risk strategy by backloading her plans to start just before voters go the polls in 2029. Continue reading…