Press Story

Strong start with action on cost of living and growth, and fiscal discipline kept tight
Key measures including banks tax, gambling levy and fiscal devolution are important first steps, all called for by IPPR
Time now to focus on more ambitious future steps on industrial policy, stabilising rents and reforming tax

Responding to the Budget, Harry Quilter-Pinner, executive director at IPPR, said:

“Today's Budget has made a strong start on the big reform that the UK needs: action to support families with the cost of living, to invest in the growth that's critical for our economy and to signal the importance of fiscal discipline.

"The banks levy on windfall profits, changes to the gambling levy and the government’s road map on fiscal devolution, all recommended by IPPR, are important first steps on tax reform to drive greater prosperity that's fair to all.

"But there is much unfinished business if John Healey wants to be seen as the great reforming Chancellor this country needs right now. The government’s 10-year plan and next year's spending review will now need to do the heavy lifting of fundamental reform.

“IPPR argues that this should include a bolder industrial policy so the UK is driving the industries of the future, measures like rent stabilisation to tackle the cost-of-living crisis, and fundamental reforms of capital gains and property taxes to drive growth and fairness.”

On the Budget's macro-economic impact Carsten Jung, associate director for economic policy, said:

“The cost of living support announced today could have real economy wide benefits. It will lower inflation by at least 0.2 percentage points, which could help the Bank of England keep interest rates lower than otherwise.

“The temporary tax on banks goes some way to address the £18 billion annual taxpayer losses at the Bank of England, which are the result of a botched implementation of quantitative easing. But full reform is still needed to avoid the taxpayer bill from swelling.

“The government is also giving a clear sense of direction on growth. Its programmes to boost homegrown AI and its support for scale-ups is what is needed to grow our frontier sectors of the future.”

Among IPPR’s recommendations adopted by John Healey were:

Giving local leaders more fiscal autonomy
A levy on commercial banks
Action to level the playing field between online and bricks-and-mortar retailers
Increasing gambling tax on machine games

ENDS

IPPR experts are available for interview, including:

Harry Quilter-Pinner: Harry is executive director of IPPR and a frequent commentator on TV and radio. He previously worked as an economist at the Foreign Office and is widely regarded as one of the most influential figures shaping government policy outside the Labour Party.

Zoë Billingham: Zoë is director of IPPR North and an economist specialising in regional inequality and the North of England. Before joining IPPR, she worked at the Treasury and Cabinet Office. IPPR North worked extensively with Andy Burnham during his time as mayor of Greater Manchester.

Carsten Jung: Carsten is associate director for economic policy at IPPR and a regular commentator on the UK economy. Before joining IPPR, he spent six years at the Bank of England, having previously worked at the International Monetary Fund.

CONTACT

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David Wastell, director of news and communications: 07921 403651 [email protected]