Politics and Insights

Labour’s plans for deficit reduction could mean that spending cuts finish by 2016 – just as the Tories’ biggest planned cuts will start to kick in. The post-Budget briefing from the Institute for Fiscal Studies highlights “the big differences between the parties” on planned spending cuts.

At the publication of the briefing, Director of the IFS Paul Johnson said:

“Our latest estimates suggest that Labour would be able to meet its fiscal targets with no cuts at all after 2015-16.”

According to the report, the Tories’ spending plans would see larger cuts between 2016 and 2018 than anything that has been seen over the last five years, while these estimates suggest that Labour’s plans could see an end to cuts by that point. It also describes the post-recession period as “by far the slowest recovery in incomes in modern history”.

Ed Balls reacted to the report saying:

“This is…

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