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The UK should move towards European levels of taxation to end austerity.

The centre-left Institute for Public Policy Research found that public spending would rise by £2,500 per person per year if the UK matched government spending in similar European countries, such as France and Germany.

Such an increase would see Government spending increase from 40% of GDP to the European average of 48% of GDP, the think tank said.

Researchers classed Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Spain and Sweden as similar European states.

The findings also suggested there is no obvious trade-off between higher social spending and economic growth, as the other countries had similar rates to the UK.

(Image: AFP/Getty Images)

The UK is in the bottom half of rankings for poverty, health and wellbeing outcomes, and is the most unequal country in Europe.

Harry Quilter-Pinner, senior research fellow at IPPR, said: “We may be leaving the EU, but in other ways we must become ‘more European’.

“Our neighbours have consistently invested more in welfare and public services and consistently deliver better social outcomes than us.

“We need a fundamental shift in our approach to investment in this country to deliver high-quality social and childcare, a life-long education system, 21st century healthcare and a properly funded benefits system.

“Ending austerity must be more than a political soundbite.

"Austerity has left our social safety net on its knees. It is morally wrong and economically illiterate to continue with the cuts.”