Chancellor Rachel Reeves unveiled the Labour Government's funding plans during this afternoon's Spending Review, with analysts warning tax rises "could come in the autumn" to pay for today's announcements.
The Chancellor confirmed massive spending boosts towards energy, infrastructure, housing, transport and health but has previously ruled out raising taxes on "working people" to pay for these funding pledges.
During her speech in Parliament, Rachel Reeves told Government department spending will be paid for from tax receipts, claiming she can allocate £190billion more to day-to-day services than the Conservatives did in power.
Campaigners and Labour MPs have called on the Treasury to launch a tax raid on wealth, with Reeves already ruling out hikes to income tax, National Insurance for workers, VAT and corporation tax.
The Chancellor has ruled out further tax rises on "working people" despite her Spending Review plans
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However, the Institute of Fiscal Studies (IFS) is sounding the alarm that taxes are likely to be raised following today's Spending Review to pay for the Government's plans.
Speaking to BBC Radio 4, the think tank's director Paul Johnson potential tax raids could be implemented "if anything goes wrong with any of the current forecasts".
He explained: "We obviously saw some significant tax increases in the Budget last October. We have got the deficit significantly higher than planned over this Parliament, so borrowing will be a lot higher than planned.
"But the risk is certainly that when we get to the next Budget this coming autumn, if the economic forecasts move at all in the wrong direction then we may have to have some more tax increases.
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Britons are concerned about the rising tax burdenGETTY "It is important to be clear about this spending review, it is not announcing any new money. The Chancellor is sticking to the spending plans, at least we assume she is, she set out back in October and what she is doing is allocating that money.
"The risk in terms of further tax rises is if anything at all goes wrong with any of the current forecasts then they will come again in the autumn."
Ahead of today's Spending Review, Shadow Chancellor Mel Stride accused Reeves of "spending money she doesn't have" and warned the public to expect higher taxes.
Reacting to the Chancellor's statement, Stride stated: "This spending review is not worth the paper that it is written on because the Chancellor has completely lost control.
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The Chancellor has promised more funding for transport, energy and infrastructure
GBNEWS"This is the spend now, tax later review because the Chancellor knows that she will need to come back here in the autumn with yet more taxes and a cruel summer of speculation awaits."
Stephen Millard, interim director of the National Institute of Economic and Social Research said: "The Chancellor has yet again said that her fiscal rules are ‘non-negotiable’.
"But, given the small amount of headroom at the time of the spring statement and the increases in spending announced since then, it is now almost inevitable that if she is to keep to her fiscal rules, she will have to raise taxes in the autumn budget."
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