More from IFS
Understand this issue

Unfreezing the personal allowance
What would unfreezing the personal allowance mean for taxpayers and how much would it cost?
4 August 2026

How could the Chancellor raise more tax?
What are the Chancellor’s options for raising tax, and what would they mean for households, the economy and growth?
6 November 2025

How to fix income tax
How the UK’s income tax system is poorly designed - and how reforms could make it fairer, simpler, and more efficient.
21 October 2025
Policy analysis

The Welsh Government’s record on tax and benefit policy
Wales leads on council tax revaluation – but has followed England on a range of ill-advised tax policy changes
20 March 2026

Wales leads on council tax revaluation – but has followed England on a range of ill-advised tax policy changes
In several areas Wales has been a follower on tax policy, mirroring ill-advised tax policies in England
20 March 2026

How are frozen tax thresholds reshaping who pays personal taxes?
Personal tax thresholds have been frozen since 2023 or earlier, meaning inflation erodes their real value. Extending freezes to 2029–30 raises £8bn.
14 November 2025
Academic research

Fiscal drag with microsimulation: evidence from Spanish tax records
Fiscal drag arises when nominal tax parameters remain unchanged despite nominal income growth, thereby increasing effective tax rates and revenue.
1 June 2026

Tax cuts and tax compliance: evidence from grants to Green municipalities
This work examines whether a reduction in a salient local tax can increase tax compliance.
1 June 2026

Focal pricing constraints and pass-through of input cost change
I prove that, in a simple but general framework, expected pass-through is unchanged by the presence of focal pricing constraints.
13 April 2026