A leading economic think tank has found that the cost of living crisis is about to turn around. Analysis for the Institute for Fiscal Studies said there could be room to increase spending or cut taxes soon after the general election next year and still restore the public finances to health. However, the Institute for Fiscal Studies have still warned that the impact of the Government’s planned cuts in public services after the next election will be “hugely challenging”. They railed against overconfidence after a return to healthy growth in the economy, saying 60% of Chancellor George Osborne’s cuts are still due to take effect from next year.
Gary from PSI: Separately figures from Oxford Economics predicted 2.6% growth in GDP this year, raising the prospect that continued growth could remove the need for George Osborne’s austerity plans to be implemented in full.
