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The Institute for Fiscal Studies (IFS) Research Economist Xiaowei Xu, said in her latest report released on Friday, the UK PM Johnson’s plans to cut income and social security taxes will prove costly, as cited by Reuters.

Key Highlights:

“If you are going to spend that much cutting taxes for those on high incomes or supporting low earners, you could find much better ways of doing so than the policies proposed by the prime minister.”

“Cutting NICs to help low earners is a particularly blunt instrument.”  

“Doing so would also tend to strengthen the incentive to be in paid work for some of the lowest paid.”