The 12 sectors Keir Starmer 'won't rule out tax rises' in including fuel duty and inheritance tax, according to top think-tank

Keir Starmer has failed to dismiss the prospect of raising taxes in at least a dozen areas, a leading think-tank claimed yesterday.

Labour's manifesto promises a 'tax lock' on the main rates of income tax, National Insurance and VAT, while Shadow Chancellor Rachel Reeves has also insisted she will not raise corporation tax.

But analysis by the Institute for Fiscal Studies (IFS) yesterday identified at least 12 sectors in which Labour had refused to rule out increasing taxes, including fuel duty, capital gains tax, inheritance tax and stamp duty.

The party has said its published plans do not require additional tax rises. However, the IFS believes the incoming government will face a 'stark choice' between raising taxes and cutting spending.

The think tank said it would be a 'considerable surprise' if Labour does not hike taxes beyond those outlined in its manifesto if it wins next week's election.

And it accused both main parties of a 'conspiracy of silence' over the true state of public finances. Labour has outlined £8.5 billion a year in tax rises, while the Conservatives have pledged £17 billion in tax cuts. 

But the IFS said neither party wanted to talk about a further £10 billion of tax rises already baked in due to the six-year post-pandemic freeze on tax thresholds.

Yesterday it warned voters they were likely to face five more years of tax rises or spending cuts. Director Paul Johnson said UK taxes were at the 'highest level ever' yet public services were struggling. 

He added: 'Regardless of who takes office following the General Election, they will – they might get lucky, but unless they get lucky – soon face a stark choice: raise taxes by more than they have told us in their manifesto or implement cuts to some areas of spending or break their fiscal rules and allow debt to rise for longer.'

He dismissed Labour's vow not to raise taxes on 'working people', adding: 'At face value, Labour's promise of 'no tax increases on working people' rules out essentially all tax rises. 

'There is no tax paid exclusively by those who don't work. Who knows what this... is really supposed to mean?'