Head of influential thinktank urges politicians to stop making empty promises on taxes, warning of potential consequences
Paul Johnson, director of the Institute for Fiscal Studies, has called on politicians to be honest with the public about the financial challenges facing the next government. In an interview with Sky News’ Sunday Morning With Trevor Phillips show, Johnson criticized both the main parties for avoiding a discussion on the scale of the issue at hand.
This comes as the Labour party released their manifesto, which includes a pledge not to raise income tax, national insurance, or VAT for the next five years. The move is seen as an attempt to reassure voters after the Conservatives claimed that Labour would increase taxes by £2,000.
However, Johnson warned against ruling out potential solutions, stating, “I do wish they’d stop ruling things out because they may well find that they regret that when they assume office.” He also expressed concern that avoiding “simple taxes” could lead to more complex and economically damaging alternatives.
Johnson’s sentiments were echoed by Labour leader Sir Keir Starmer, who promised that their manifesto would not contain any tax surprises and that all plans were fully funded and costed. Starmer also emphasized that Labour is not planning to return to austerity measures, despite ruling out personal tax increases.
In response, Work and Pensions Secretary Mel Stride defended the Conservative party’s economic record, stating that “taxes are coming down” and that they have a plan to continue this trend. He also criticized Labour’s lack of a clear plan for the future and accused them of trying to “drift across the line almost without anybody noticing.”
Shadow justice secretary Shabana Mahmood countered by pointing to the impact of the 2008 financial crash and the current economic reality left by the Tories. She stated that Labour’s proposals are fully funded and costed, unlike the scattergun approach of the Conservatives.
Meanwhile, Liberal Democrat leader Sir Ed Davey proposed a £2 hourly pay rise for care workers as a way to tackle shortages in the struggling sector. He argued that this increase would incentivize people to choose careers in care instead of working in other industries.