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Home Publications More tax increases or spending cuts needed to pay for cost of credit crunch

More tax increases or spending cuts needed to pay for cost of credit crunch

Robert Chote, Carl Emmerson, David Miles and Jonathan Shaw
Press release

The Government - or its successor - will need fresh tax increases or spending cuts worth an extra £20 billion a year by the end of the next Parliament, if it is to expect to repair the public finances as planned in November's Pre-Budget Report, according to the 2009 IFS Green Budget. Even if it acts, public sector debt may well not return to pre-crisis levels for more than 20 years.