Tories have no room for tax cuts despite £52bn a year stealth rise, says IFS

UK stuck between weak economic growth and risk of persistently high inflation, says thinktank

The government has no room for unfunded pre-election tax cuts despite having pushed through a “colossal” £52bn a year stealth raid on household incomes on Rishi Sunak’s watch, the Institute for Fiscal Studies has warned.

Britain’s foremost economics thinktank said the dire state of the public finances meant that attention-grabbing tax cuts risked stoking inflation, leading to higher Bank of England interest rates and a lengthy recession.