Tax Cut 'gamble' Will Make Debt Unsustainable, Says IFS

22nd September 2022

Tax cuts, due to be announced on Friday, are likely to push UK borrowing and debt to unsustainable levels, a leading economic think tank has warned.

The UK will spend billions helping households and firms with energy bills, but tax cuts will have a longer-term impact on public finances, the Institute for Fiscal Studies said.

Even after that support ends, the UK will borrow £100bn a year, it says.

Tax cuts amounted to a "gamble" that may not pay off, the IFS warned.

In Friday's mini-budget the government is expected to reverse a rise in National Insurance and scrap a planned increase in corporation tax, which could cost £30bn.

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