- By Faarea Masud & Tom Espiner
- Business reporters, BBC News
25 January 2024, 05:58 GMT
Updated 57 minutes ago
Image caption,
Chancellor Jeremy Hunt has hinted at tax cuts in the upcoming spring Budget
Promises of tax cuts during general election campaigns may have to be rolled back as the UK economy faces some of its worst problems since the 1950s, a leading think tank has said.
“Tax cuts today add to the risk of tax rises or spending cuts tomorrow,” the Institute for Fiscal Studies said.
Politicians need to be honest about tough economic trade-offs, it added.
But the Treasury said the economy was turning a corner, and that growth would mean more funding for public services.
IFS director Paul Johnson said that if political parties looking to form the next government “are promising tax cuts, let’s hear where the spending cuts will fall”.
“It might be easy to announce immediate tax cuts, without…
