Kwarteng faces finding £60bn of public spending cuts, says IFS
Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. The Institute for Fiscal Studies said it was not possible to deliver cuts on that scale through efficiency savings and “trimming the fat” and that it would require major cuts to public services. In its “green budget” report ahead of Mr Kwarteng’s statement, the IFS said Government borrowing now looked set to hit almost £200 billion this year – around double the £99 billion that was forecast at the time of the last budget in March. The IFS said that on that basis, it would require a “fiscal tightening” of £62 billion in 2026–27 to stabilise debt levels – so even reversing all Mr Kwarteng’s mini-budget tax cuts would not be enough. You have to say what it is the state currently does that the state is no longer going to do.” Citigroup’s chief UK economist Ben Nabarro said the reaction of the markets to Mr Kwarteng’s mini-budget – which saw the pound slump to a record low against the US dollar – should be seen as a warning which ministers would be unwise to ignore.
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