IFS Criticises 'Dishonest' Tory/Labour Tax and Spending Plans

IFS CRITICISES 'DISHONEST' TORY/LABOUR TAX AND SPENDING PLANS

IFS criticises ‘dishonest’ tax Tory/Labour and spending plans.

The highly respected Institute of Fiscal Studies (IFS) has warned that neither the Tories nor Labour are being honest with voters about the economic consequences of their policy proposals.

The think-tank said Labour’s plans to raise taxes on businesses and financial transactions will hit pension funds, reducing returns for savers and harming living standards into old age. It also said the party’s tax plans may “not raise anything like” the £48,600 million claimed.

Meanwhile, the Tory focus on cutting immigration risked a £6,000 million hit to the exchequer, the IFS said. It added that the Tories’ additional funding pledges for the NHS and schools were merely restating promises from the March budget.

“The shame of the two big parties’ manifestos is that neither sets out an honest set of choices. Neither addresses the long-term challenges we face,” said the think-tank’s deputy director, Carl Emmerson.

The Labour manifesto, if implemented, would harm the UK's competitiveness by damaging effort, entrepreneurialism, job-creation and productivity.

Commenting, Patricia Gibson said:

"While the UK parties have between them created an eye-watering national debt of £1.73 trillion - £28,000 for every man, woman and child in the country - the SNP Government has balanced the books every year for the last decade. We have done so despite 9% cuts to Scotland's budget imposed by Westminster, while steadily improving services.

"In our Manifesto we will make no wild promises. We will however pledge to stand up for Scotland at every opportunity, fighting austerity and for sustainable economic growth, through key initiatives, such as the Ayrshire Growth Deal."