Economic trends: more cuts ahead as austerity is not over

As the tax burden grows, government austerity plans are unlikely to ease. Thomas Pope, research economist at the Institute for Fiscal Studies (IFS) considers the pressures on the public purse, looking at the areas worst hit by the continuing budget cuts

By the end of this parliament, the tax burden is forecast to rise to its highest level as a share of national income for 30 years. This is partly a result of further tax raising measures planned over the next few years, for example the apprenticeship levy that comes in this April, but this increase is not a sudden one. The tax burden has risen steadily over the past few years as the government has introduced tax cuts but bigger tax rises.

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