Balancing the books will place a massive burden on tax payers and benefit claimants.
Another £15billion of tax rises and spending cuts will be needed on top of those already planned to get rid of the UK’s deficit headache over the next five years, experts claim.
A damning report card on the last two parliaments shows that balancing the books after the snap election will place a massive burden on tax payers and benefit claimants.
The Institute of Fiscal Studies report on the UK public finances shows the massive impact the 2008 financial crisis and the associated recession had on the country.
The report – Two Parliaments Of Pain – warned that the era of austerity is not over, with more tax rises and spending cuts to come if the books are to be balanced.
Seven years of austerity has meant “significant” cuts to areas such as working-age benefits and law and order as a proportion of GDP.
Despite this, overall public spending remains higher than before the 2008 financial crash, as a result of
“persistently poor” economic growth. The IFS found that the coalition Government increased taxes by £10billion a year overall as a result of decisions taken between 2010-15.
Carl Emmerson, deputy director of the IFS and report author, said: “The deficit is roughly back to the level it was prior to the financial crisis, although above its long-run average.
On the tax side, the impact on the public finances of substantial tax cuts has been more than outweighed by tax raising measures. On the spending side, seven years of austerity has seen cuts to areas such as working age benefits and public order & safety.