IFS warns of £9bn tax rises after 2015 election

Tax rises of up to £9 billion could be imposed on British households and businesses after the next general election in 2015, a leading economic forecaster has warned.

According to the Institute for Fiscal Studies (IFS), British Chancellor George Osborne’s fourth budget, presented this week, had paved the way for bigger tax increases after 2015 general election.

“That is after an election and it is much more possible that a future government will prefer to increase taxes instead,” said Rowena Crawford of the IFS.

This comes as he estimated tax rises, equal to 2 percent in the basic rate of income tax, could drag more British people into poverty.

In his speech at the House of Commons on Budget Day, Osborne said Britain’s economy will grow less this year and the next as the country is bracing itself for drastic austerity cuts.

The Chancellor warned the country’s growth would halve this year to 0.6 percent from the 1.2 percent.

Earlier in February, credit ratings agency Moody’s downgraded the British government’s bond rating from the top AAA to AA1 due to Britain’s rising debt and slowing growth.

There are speculations that Britain could face its second credit downgrade as a result of the country’s sluggish recovery.