Taxes could rise further to fund the government's ambitious public spending plans, the Institute for Fiscal Studies has warned.

The number crunchers said Gordon Brown would either have to tightly control spending in other departments or raise taxes further to fund the yearly 7.4 per cent real terms rise in health spending over the next five years.

It estimated that the government has specifically targetted the top 10 per cent of earners for the first time since taking office.