Chancellor Philip Hammond will have to squeeze an extra £19bn out of taxpayers by 2022/23 to meet Prime Minister Theresa May’s promise to end austerity, while also keep his pledge to eliminate the deficit, according to a detailed analysis from one of the UK’s trusted economic bodies.

The Institute for Fiscal Studies (IFS) stated that the Chancellor will need to raise the equivalent of 1p on income tax, national insurance and VAT.

The institute warned that, unless economic growth is much better than expected, Hammond must decide between “substantial” tax increases or ditching his target of balancing the books by the mid-2020s.

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