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IFS Warns of Dismal Living Standards Amid Tax Hikes

11/28/2025

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IFS Warns Living Standards

The Institute for Fiscal Studies (IFS) warns of a "truly dismal" rise in living standards, with disposable income rising 0.5% annually over five years.
Helen Miller, head of the IFS, says Labour breached its pledge not to raise taxes on working people, citing National Insurance rises.
Chancellor Rachel Reeves defends the Budget, arguing the impact on workers was minimized through other tax adjustments.
The Resolution Foundation backs the IFS, predicting the second-worst living-standards growth in this parliament.

Right

Reeves Unveils Budget

Chancellor Rachel Reeves (Labour) presents a Budget with £26 billion in tax increases, drawing criticism over its impact on low- and middle-income earners.
Critics say freezing income tax thresholds until 2030/31 breaches Labour's manifesto.
Budget funds welfare measures, including the abolition of the two-child cap, costing £3 billion annually by 2029/30.
The Office for Budget Responsibility's accidental forecast leak overshadowed the announcement, prompting calls for Reeves's resignation from Kemi Badenoch.

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IFS Warns Living Standards

The Institute for Fiscal Studies (IFS) warns of a "truly dismal" rise in living standards, with disposable income rising 0.5% annually over five years.
Helen Miller, head of the IFS, says Labour breached its pledge not to raise taxes on working people, citing National Insurance rises.
Chancellor Rachel Reeves defends the Budget, arguing the impact on workers was minimized through other tax adjustments.
The Resolution Foundation backs the IFS, predicting the second-worst living-standards growth in this parliament.

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