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Institute for Fiscal Studies on Labours Funding Plans.

Institute for Fiscal Studies on Labours Funding Plans.

Labour’s plan to fund higher school spending through increases in corporation tax could boost educational performance but would risk damaging the economy’s long-term growth prospects, the Institute for Fiscal Studies has said.

The thinktank’s analysis of one of Jeremy Corbyn’s flagship policies shows that reversing the government’s planned cuts to schools’ budgets would be comfortably paid for by the extra revenue raised by increasing the main rate of corporation tax to 26%.

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