Budget 2013: IFS says borrowing in 2014 will be 70bn more than hoped in 2010

Budget 2013: IFS says borrowing in 2014 will be 70bn more than hoped in 2010.

Borrowing this year will be the 70bn more than was predicted in 2010, according to the Institute for Fiscal Studies (IFS).

Presenting its post-budget analysis, the Institute for Fiscal Studies (IFS) also predicted that the cut to national insurance for companies means that cabinet ministers are going to have to find another £3.5bn in cuts from their Whitehall departments in the year to come.


The first three numbers are borrowing in pounds billion expected this year, next year and in 2014/15. The second three numbers were the forecasts for the same years made at the time of the June 2010 Budget

The chancellor’s claims to be bringing down borrowing this year below last year’s total were also slammed by the IFS, which said that the chancellor had “carefully managed the numbers with an eye on the headline borrowing figures”.

In other words, the chancellor’s claim to have brought down borrowing this year compared to last was based on a fiddling of the figures. As the IFS goes on to say:

“The truth is that borrowing is the same this year as it was last year. And it will be the same next year as this year.”
“There is every indication that the numbers have been carefully managed with a close eye on the headline borrowing figures for this year. It is unlikely that this has led either to an economically optimal allocation of spending across years or to a good use of time by officials and ministers.”
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