‘Big and painful’ cuts needed to fix budget, says IFS

The chancellor will need to make “big and painful” spending cuts to put the country’s finances on a sustainable path, the Institute for Fiscal Studies think tank has warned.

With a weaker economy and promised tax cuts, there will be a large shortfall in revenue, the IFS predicts.

It calculates the government would have to spend £60bn a year less by 2026-27.

However, the Treasury said its tax cuts and reforms would deliver “sustainable funding for public services”.

In a new report, the IFS outlines the scale of the cuts necessary to make the sums add up over the next five years, using an illustrative example.

It suggests Chancellor Kwasi Kwarteng could:

Mr Kwarteng and Prime Minister Liz Truss have argued focusing on measures to promote growth will help plug the shortfall between income and outgoings.

The chancellor has promised to set out further details of his economic strategy on 31 October, three weeks earlier than originally planned, alongside a full forecast from the…

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This article was written by and originally published on www.bbc.co.uk