No scope for tax cuts before 2016, says fiscal council

The Government’s Fiscal Advisory Council has slapped down Labour’s suggestion of tax cuts for families and warned there is no scope for such relief until at least 2016.

It also warned future budget targets for the remainder of the Coalition’s term should be rigidly followed.

Ruling out such cuts will dash the hopes of struggling families paying more through the universal social charge, property taxes, and who now face water charges.