Marcus Manuel, lead author of the report and lead researcher at the ODI, called on other countries to follow the UK’s lead.
“If the UK can do it in the middle of austerity and all the challenges we have got, it’s not asking for the impossible for other countries to increase their aid budget,” said Mr Manuel.
Nearly half of the world’s poorest people are in middle income countries such as India and Nigeria, which could increase tax revenues.
“This is all feasible and a lot of effort is going in to help share experience between countries so they can raise taxes without penalising growth,” added Mr Manuel.
“There’s a range of things countries can do. Business taxes and value added tax may be very limited. Countries may have income taxes but not many people pay it,” he said.