IFS: Higher taxes are here to stay The Institute for Fiscal Studies has warned that an era of low taxes is coming to an end. Paul Johnson, the director of the economic think-tank, says that with neither ministers nor the public seemingly keen on cuts to spending on public services or the state pension, a higher tax burden is set to be "permanent." Mr Johnson, a former head of public spending at the Treasury, noted that the tax burden is expected to hit a record high of 37.5% of GDP by 2025, compared with its average of 30% to 32% for the past four decades. He said this means low taxes are likely to be off the card for many years. This will be disappointing news for motorsport business owners.