IFS study shows the Chancellor's economic strategy is failing
- Published on Monday, 26 November 2012 10:46
- Posted by Vicki Mitchem
Commenting on new analysis published today (Monday) by the Institute for Fiscal Studies, which warns that the Chancellor may have to abandon his fiscal target on falling debt and announce more spending cuts after 2015.
TUC General Secretary Brendan Barber said:
'This analysis shows that the Chancellor's economic strategy is failing on all counts. The economy has been flat-lining for the last two years, causing borrowing to rise and tax revenues to fall.
'The UK should be on the road to recovery by now. Instead we could be set for a prolonged period of debilitating austerity well beyond the next election.
'The Chancellor should use his Autumn Statement next week to change course. Sadly he looks set to drive the economy even faster in the wrong direction.'
On Wednesday 28 November, the TUC will publish a new study showing the impact of departmental spending cuts up to 2017/18 on households and families across the UK.