UK faces fiscal pressure from ageing population, prompting calls for tax reform

The Institute for Public Policy Research (IPPR) has called for significant tax reforms in the United Kingdom to address the fiscal pressures caused by an ageing population. According to a report by Oxford professor Ben Ansell, demographic shifts could account for nearly 80 per cent of additional fiscal pressure on the UK by 2075.

To mitigate these costs, the IPPR proposes a new “fiscal contract” that shifts the tax burden from younger workers toward wealth and property. Key recommendations include extending National Insurance to older earners and replacing existing council tax and stamp duty with a single proportional property tax.

These proposals come as Prime Minister Andy Burnham has refused to rule out tax increases in the upcoming Budget, citing the precarious state of public finances. The report argues that current systems disproportionately protect those who have benefited from rising property and asset wealth while placing an increasing burden on the working population.