The Left-leaning Institute for Public Policy Research (IPPR) has urged the Government to shift more of the tax burden from younger workers onto older, wealthier generations, arguing the current system unfairly penalises work and youth. The think-tank's recommendations are likely to influence Chancellor John Healey as he prepares his first Budget in October, amid mounting fiscal pressure and speculation about tax rises, though the proposals could unsettle those who have spent years building up homes and savings.

The report proposes replacing council tax and stamp duty with a proportional property tax of 0.65 per cent annually, raising capital gains tax to match income tax rates, and extending national insurance to employees working beyond state pension age. It highlights a stark disparity whereby pensioners earning £45,000 to £105,000 pay tax rates of 20 to 60 per cent, compared with 37 to 71 per cent for younger graduates repaying student loans. The IPPR warns that Britain's ageing population, projected to see the over-65 share rise from 18 per cent in 2024 to 27 per cent in 2075, will drive huge increases in health and social care costs, with report author Ben Ansell calling for a "new fiscal contract" that taxes wealth and property more fairly.