Rachel Reeves should avoid 'half-baked' tax fixes in Budget, warns IFS

Breaking News: IFS Warns Chancellor Against "Half-Baked" Tax Fixes The Institute for Fiscal Studies (IFS) has urged Chancellor Rachel Reeves to avoid "directionless tinkering and half-baked fixes" when trying to boost the government's tax take in next month's Budget. The think tank, regarded as one of the UK's most influential economic voices, warned that some tax rises could be "especially economically harmful". Timeline: Next month's Budget is expected to raise tens of billions of pounds through tax increases or spending cuts. Chancellor Reeves has described her self-imposed rules for government finances as "non-negotiable". The two main rules are: 1. Not to borrow to fund day-to-day public spending by the end of this parliament. 2. To get government debt falling as a share of national income by the end of this parliament. Immediate Impact: The IFS warning comes amid growing pressure on Chancellor Reeves to raise taxes to meet her rules. Analysts estimate that tens of billions of pounds will need to be raised through tax increases or spending cuts. The Treasury has stated that the Budget will strike a balance between funding public services and encouraging growth and investment. Background Context: The UK government's finances have been under scrutiny, with Chancellor Reeves facing criticism for her self-imposed rules. The IFS warning highlights the need for careful consideration of tax policies to avoid economic harm. What Happens Next: As the Budget approaches, investors will closely watch Chancellor Reeves' decisions on taxation. The IFS warning serves as a reminder that "half-baked" fixes could have far-reaching consequences for the UK economy. *This story is developing. Information compiled from Bbc reporting.*