David Cameron 's claim to be a 'tax-cutting politician ' was under fire last night – as a study found the Coalition has raised taxes by more than £16billion a year . The independent Institute for Fiscal Studies said the net effect of changes by the Coalition had raised taxes by an average £255 for every person in the UK . The respected think-tank found the tax rises totalled £64.3billion – including a £14billion hike in VAT and a £5.2billion increase in National Insurance contributions . Millions of people have been dragged into paying the 40p tax rate for the first time – and inheritance tax has increased as thresholds have been frozen for years . Humiliating : Revelation that the Coalition has raised taxes is embarrassing for Prime Minister David Cameron ( pictured ) , who has spoken repeatedly of his desire to be seen as a 'tax cutter ' The tax hikes have been only partially offset by reductions totalling £48billion – including £8billion from raising the personal income tax threshold , £5.9billion in lowering corporation tax and £3.9billion from real-terms cuts in fuel duties . Ministers insist the tax rises were needed to help plug the budget deficit left by Labour . Sources say they had no choice but to take 'difficult decisions ' to save Britain from bankruptcy . But the findings remain embarrassing for Mr Cameron , who has spoken repeatedly of his desire to be seen as a 'tax cutter ' . They show the value of the rise in personal income tax allowance has been wiped out by rises in other levies . In next week 's Budget , Chancellor George Osborne , is expected to announce a further increase in the personal allowance , along with modest cuts in alcohol duties . But Treasury sources admit they have little money to play with . The IFS said the Coalition 's changes represented a 'missed opportunity to improve the tax system ' , with little attempt to address 'fundamental structural deficiencies ' . Several of the changes have increased 'unwelcome distortions ' in the system , the think-tank added . It said it was difficult to find a 'good economic reason ' for lifting lower-paid workers out of income tax while leaving National Insurance thresholds largely untouched – warning it was an 'absurdity ' that the two taxes were not integrated . Warned : The UK Statistics authority has 'ticked off ' Shadow Chancellor Ed Balls for claiming the number of workers on zero-hours contracts had increased by 400,000 in recent months . Ed Balls has been ticked off by the statistics watchdog for claiming the number of workers on zero-hours contracts had increased by 400,000 in recent months . Sir Andrew Dilnot , of the UK Statistics Authority , said Mr Balls 's statement was incorrect , as it relied on comparing totals at two different times of year and ignored the possibility that some people could hold multiple contracts for different jobs . The study praised last year 's stamp duty reforms . But it warned that council tax had been allowed to get 'ever more out of date ' , with bands in England and Scotland based on 1991 property prices . It added that areas such as fuel duties and business rates had seen 'ad hoc , often temporary , announcements overtaking each other ' . Authors Stuart Adam and Barra Roantree said there was a 'better way to make tax policy ' . Labour seized on the report as evidence that the Government had failed to deliver better living standards . George Osborne will pledge to tackle the scandal of ordinary workers being dragged into the 40p tax rate next week in his last Budget before the election . The Chancellor is expected to fast-track plans to raise the starting threshold for paying the higher rate tax to £50,000 , if the Tories win the election . The Conservatives promised the move last year , but did not set out a detailed timetable . At the time , Mr Osborne said only that the threshold – currently £41,865 – would rise to £50,000 by 2020 . Lib Dem opposition means no action can be taken in the Finance Bill which will be pushed through before parliament breaks up at the end of the month . 'Tax-cutting ' : Chancellor George Osborne is expected to fast-track plans to raise the starting threshold for paying the higher rate tax to £50,000 if the Tories win the election . But Prime Minister David Cameron is understood to be pushing for a commitment to begin raising the threshold next year . A Tory source said : 'There is a recognition that we need to get on with this to show that we mean business . ' The number of people paying 40p tax has risen by about two million , to five million , since 2010 , as the Coalition cut the threshold , and then raised it more slowly than inflation , to help pay off the budget deficit left by Labour . The threshold is also the starting point at which families with a relatively high earner start to lose their child benefit payments . The Prime Minister said this week that too many people were now paying a tax that was 'only ever meant for the better off ' .
Prime Minister David Cameron has claimed to be a 'tax cutting ' politician . Reputation under fire after the revelation by the Institute for Fiscal Studies . It discovered tax rises totalled £64.3billion - including £14billion VAT hike . 40p are paying Millions tax for first time and inheritance tax increased too . Ministers say tax rises necessary to help plug budget deficit left by Labour .