Thursday, February 18, 2010

Tories be warned

An extra £13bn in tax rises or spending cuts is needed by 2015-16, according to a respected think tank.

The Institute for Fiscal Studies (IFS) said the funds are needed for the government to reassure investors it is committed to repairing public finances.

However, it cautions against any extra budget tightening in 2010, because of the fragile state of the economy

The IFS predicts economic growth will be 2% a year over the next five years, lower than the Treasury's suggested 3%.

It is also forecasting that weak consumer spending and a muted rebound in capital investment will hinder economic growth.

BBC News - Economists call for tighter budget squeeze
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