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High taxes are the least of Britain’s economic problems, study finds

HIGH levels of tax are the least of Britain’s economic problems, liberal think tank the Institute for Public Policy Research (IPPR) said today.

A new briefing showed that Britian’s tax rates are unremarkable by international standards, although Labour claims that they are at “record” levels when refusing to consider increases.

The IPPR research showed that 55 per cent of voters support higher taxes if they are linked to spending on services and 63 per cent believe the rich are not taxed enough.

Higher taxes are needed, the report argues, to cope with climate change and an ageing population. 

Crumbling infrastructure, energy inefficiency and struggling health and education services are greater problems than tax rates, it says.

The Tories are strongly suspected to be looking to cut taxes, however, with inheritance tax the favourite target.

Abolishing inheritance tax would mainly help the wealthy while costing an initial £7 billion a year, rising thereafter, an analysis by the Institute of Fiscal Studies found.

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