Birth rate 'collapse' could raise income tax

THE NATION'S collapsing birth rate could lead to a 7.4p rise in income tax, a leading think-tank has warned.

- David Williamson

Policy Exchange says the country faces "exploding levels of state debt" unless people have more babies.

The birth rate in England and Wales crashed to the lowest on record in 2023, with women having on average just 1.44 children.

This is far below the "replacement birth rate" of 2.1 children, and is down from 1.83 just a decade earlier.

Experts are recommending a raft of urgent measures, such as longer maternity and paternity leave, more flexible childcare policies, and more affordable and spacious housing so people can have larger families.

They are calling for a "fundamental rethink" of the tax and benefits system to support the family instead of focusing on the individual and a change in culture, so having two to three children is seen as "normal".