London-based Institute for Fiscal Studies said ahead of the budget later this
month that Chancellor John Healey must raise about £35bn to deliver Labour’s
ambitious spending plans. The IFS added Healey may have more fiscal headroom
than expected, but the plans’ credibility is at risk; unless the government
intervenes, inf will squeeze public spending and leave departments underfunded.
IFS director Helen Miller said: If you want to increase spending and do not want
to cut public services, you must consider tax rises.