Taxes and benefits

Rachel Reeves should consider increasing the basic rate, just as Denis Healey did in 1975 

How much does the government spend in each region of England and how does that compare with regional economic activity?

Corporation tax was introduced 60 years ago. Despite many predictions of its decline, it is now forecast to raise record amounts. 

Over 20 years since they were introduced, tax credits have now been replaced by universal credit. How did they change the UK welfare system?

Upcoming increases in the minimum wage and employer NICs could make it harder for young people entering the labour force.

This paper examines the rise of consumer incentives in tax enforcement and the conditions under which they can enhance compliance and raise revenue.

All IFS analysis to date of Chancellor Rachel Reeves' 2025 Spring Statement.

What were the decisions and trade-offs made by Chancellor Reeves?

In response to deteriorating global economic conditions, Rachel Reeves chose to fine-tune her spending plans to continue to meet her fiscal rules. 

The reforms announced today, to be implemented or consulted on, represent a fundamental change to the way that the state supports out-of-work people.

Rachel Reeves gives herself so little room for manoeuvre that she creates costly uncertainty when the choice is obvious: raise taxes or cut spending 

Mitigating the two-child limit policy would be an effective way to reduce child poverty, but designing an effective policy is not straightforward. 

Is the working-age population less healthy since the pandemic? What role is changing health playing in rising health-related benefit claims?

This report analyses the Scottish Government’s Budget for 2025–26, with chapters on tax strategy, school spending, public sector pay and more.

The OBR forecast will underpin the Chancellor’s decisions at the next Spring Forecast.

Council tax in Scotland – as in England – is out of date, regressive and distortionary. How should it be reformed, and what would the effects be?

Scotland’s Tax Strategy is welcome but says little concrete about tax policy. And some actual tax policy is divorced from any sensible strategy. 

"Shifting the performance of an entire economy requires a long-term, consistent and persistent direction." Paul Johnson writes for the Times.

We discuss how taxes like capital gains, stamp duty, and council tax impact the housing market, affecting affordability, renting, and homeownership.