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September 2009
Loosening public services squeeze requires tax rises or welfare cuts
Type: IFS Press Releases
Authors: Robert Chote, Rowena Crawford, Carl Emmerson and Gemma Tetlow

Internal Treasury projections leaked to the Conservatives imply that the rise in Whitehall spending on public services as a share of national income that we have seen under Labour to date may need to be completely reversed to fill the hole in the public finances - unless we see further tax increases or cuts in welfare payments - according to a new analysis by IFS researchers.

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