The Institute of Fiscal Studies said £41billion-worth of tax hikes or spending cuts could be required because of the anaemic recovery from the credit crisis.
It’s equivalent to £1,350 per taxpayer.
The hikes would come despite Brits suffering the biggest tax burden since the 1950s.
The Treasury’s tax take is now equivalent to nearly 35 per cent of Britain’s total economic output.
The gloomy IFS forecast came as sources claimed No.10 was considering a 1p hike in NI to generate an extra £4.9billion for the NHS, and was sounding out Tory MPs about the possibility.
The tax increase would be “tied” to NHS spending.
IFS chief Paul Johnson said at least £11billion-worth of tax hikes would be needed to “cover the additional demands for health, pension and social care spending”.
And the IFS suggested the Treasury consider a new National Insurance tax on pensioner income to help pay for the growing social care bill.
The think tank said Brits would on average be £8,900 worse off in 2022 than they were expected to be in 2008 — as the economy would be 20 per cent or £300billion smaller.
And the IFS said it defied belief the Chancellor had missed the opportunity to launch consultations on future funding of the NHS – or how to make up a £30billion shortfall in fuel duty.
Philip Hammond’s aim is to balance the books, and generate a Budget surplus, by the mid-2020s. A Treasury spokesman said last night: “Our balanced approach has reduced the deficit while also cutting taxes for over 30million people and investing in our vital public services.
“Thanks to the hard work of the British people we will now see the first sustained fall in debt in 17 years.”