A report from the Institute for Public Policy Research (IPPR) argues that Britain needs to overhaul its tax system, shifting the burden away from younger workers and onto property wealth and older generations, warning that an ageing population will drive nearly 80 per cent of the UK's additional fiscal pressure by 2075. Written by Oxford professor Ben Ansell, the paper calls for a new "fiscal contract" that includes extending national insurance to older earners and replacing council tax and stamp duty with a single proportional property tax. This comes as Prime Minister Andy Burnham declined to rule out tax rises in the autumn Budget, saying he "won't be unrealistic" about the state of public finances amid unresolved questions over funding for defence spending and social care reform.

The report notes the proportion of over-65s in the UK will rise from 18 per cent today to 27 per cent by 2074, pushing state pension costs from 5 per cent of GDP to 7.7 per cent, and adding almost 10 per cent of GDP in combined pension, healthcare and social care costs by 2075. It highlights that older people remain among the most tax-advantaged groups since they do not pay national insurance, while younger workers, including those repaying student loans, bear a disproportionate burden. Key proposals include extending the 2 per cent NI surcharge to over-65s, introducing a roughly 0.65 per cent proportional property tax in place of council tax and stamp duty, and equalising capital gains tax with income tax rates alongside an investment allowance.