IFS Press Releases

Borrowing to take the strain until the election. More pain on spending, jobs and, recent history suggests, tax after the election

Date: 06 February 2013
The IFS Green Budget, funded by the Nuffield Foundation, is published today. Main findings include:

• On current plans public service spending in “unprotected” Whitehall departments could fall by a third between 2010–11 and 2017–18

• If departments continue with trajectories implied by current plans public sector employment will have fallen by 1.2 million by 2017–18

• But within the current parliament the Chancellor has chosen not to cut spending or raise taxes further to offset much higher borrowing resulting from a weaker economy. As a result borrowing is forecast to be £64 billion higher in 2014–15 than he originally hoped.