'This is the biggest tax-rising budget for nearly 30 years', IFS Director tells LBC

3 March 2021, 18:51 | Updated: 3 March 2021, 18:59

EJ Ward

By EJ Ward

The Director of the Institute for Fiscal Studies has branded Rishi Sunak's Budget the "biggest tax-rising Budget for nearly 30 years."

Reacting to Rishi Sunak's Budget Paul Johnson the Director of the IFS told Eddie Mair that the Chancellor is dealing with the country's debt "as if it was a war."

Highlighting comments made by the Chancellor that the debt incurred due to Covid might not be paid off for a generation Mr Johnson said a very big increase in corporation tax could pay for it.

Watch: MoneySavingExpert's Martin Lewis gives his instant take on the Budget 2021

The conversation comes after the Chancellor announced corporation tax will rise in the UK to levels not seen since 2011.

He told MPs in the Commons that the tax rate on profits made by businesses will increase from 19% to 25%, but will not be implemented until 2023.

Budget 2021 LIVE: Sunak freezes income tax threshold and hikes corporation tax

According to the Budget Red Book, it will see an extra £11.9 billion raised in 2023/24, £16.25 billion in 2024/25 and £17.2 billion in 2025/26.

The IFS Director told LBC while the Chancellor's budget was "all about the future," it was the "biggest tax rising budget for nearly 30 years."

Read more: Rishi Sunak says cost of Covid will hit £407bn as he unveils Spring Budget

Read more: Sir Keir Starmer accuses Rishi Sunak's Budget of 'papering over the cracks'

Watch the whole informative exchange in the video at the top of the page.