NIESR predicts the next UK government to need tax increases for public services due to limited fiscal room and slow GDP growth.

Think tank NIESR predicts next UK government will need to raise taxes to maintain public services due to limited fiscal headroom and anaemic GDP growth. The UK economy grew by 0.1% in 2023 amid higher interest rates and inflation hikes. NIESR forecasts 0.4% growth in Q1 2024 and 0.8% growth for the year. The next government will have no room for tax cuts and must explore revenue-generating methods.

May 08, 2024
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