TAXES will have to soar to meet the cost of supporting Britain's ageing population, the International Monetary Fund warned yesterday.

It said there was likely to be 80 per cent more elderly people in the UK by 2050 than today.

And the cost of looking after them would create a massive strain on health services, long-term care and pensions - resulting in a four per cent drain on the nation's finances.

An ageing population means fewer workers paying taxes and the IMF suggests encouraging immigration of young people or a boost in birth rates to cope with the crisis.

A Treasury spokesman said: "Demographic changes are comprehensively taken into account when we consider our long-term projections."