Tories and Labour have boxed themselves in on taxation, claims IFS

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Pre-election pledges not to introduce major increases in VAT, national insurance and income tax after the election could cause problems if economy slows down

David Cameron and Ed Miliband have “boxed” themselves in on taxation after a bidding war led Labour and the Tories to rule out major increases in Britain’s three main taxes that raise 60% of revenues, the Institute for Fiscal Studies (IFS) has warned.

The IFS said that in the event of an economic downturn, Labour and the Tories would find themselves with little room for manoeuvre in the next parliament, after the most significant announcements on tax of the election by the two main parties.

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