British households should brace for further tax rises, a leading think tank has warned. 

Paul Johnson, director of The Institute for Fiscale Studies (IFS), has said that Labour’s spending plans “don’t look like the generous ones they immediately appear to be.”

He warned that although the Chancellor has planned for a “remarkable amount of additional spending” this year and further spending next year, spending is growing “implausibly slowly” from 2026-27 onwards. 

Mr Johnson argued that this could mean that Labour will be forced to further increase taxes. 

Speaking on the BBC’s Today programme, he said: “It’s possible to argue on that we’ll be in a world in which spending rises so much this year and next that no more money will be needed for the next three years of this Parliament, but I bet an awful lot that that’s not what’s going to happen, particularly given the problems that Chancellor has clearly had selling this to her Cabinet colleagues this time around.

“I suspect we’ll end up with even more spending, possibly considerably more spending than this currently planned, and that will probably mean, unless she gets lucky with growth, more tax rises to come next year or the year after.”