The IFS confirms it: the worst Tory cuts REALLY ARE still to come

The respected think tanks says a Conservative government would see a 'rollercoaster ride for public service spending'


The independent Institute for Fiscal Studies (IFS) has confirmed that under a future Conservative government the worst cuts are still to come.

In its analysis of yesterday’s budget, the IFS says that projected Tory cuts “of more than 5 per cent implied in each of 2016-17 and 2017-18 are twice the size of any year’s cuts over this parliament”.

Meanwhile the IFS says that there are “big differences between the parties” and that Labour “would be able to meet its fiscal targets with no cuts at all after 2015-16”.

Despite the chancellor’s announcement yesterday that he would ease up slightly on austerity in the next parliament, the IFS maintains that under a Conservative government Britain would see a “rollercoaster ride for public service spending” with the largest cuts to public services still to come.

And while average household incomes “have just about regained their pre-recession levels”, the IFS says that this “represents by far the slowest recovery in incomes in modern history”, adding that “having household incomes crawl back up above pre-recession levels six or seven years after the recession hit is no cause for celebration”.

As for the cost of living, average incomes among pensioners have risen, the IFS says, but among those of working age they have fallen. It adds that there have been “especially big falls for those in their 20s”.

Tellingly, despite the chancellor’s claims to be squeezing the rich the hardest, the IFS says that “looking only at changes implemented by the coalition the poorest have seen the biggest proportionate losses”.

It adds that the richest have been hit the hardest only when looking at “the period of the consolidation as a whole” (during Labour’s time in office), and that under the coalition “people on middle and upper middle incomes have been remarkably insulated from tax and benefit changes”.

James Bloodworth is the editor of Left Foot Forward. Follow him on Twitter

30 Responses to “The IFS confirms it: the worst Tory cuts REALLY ARE still to come”

  1. Mike Stallard

    That is twice the defence budget and about 2/3rd of the entire education budget. It is about half the social welfare budget.
    It is the amount which we paid this year to service our enormous debt which both parties have allowed to mount.
    Think what any government could do with £84,000,000,000! I leave it to your imagination.

  2. robertcp

    I confess that the IFS is right about people on middle and upper middle incomes. I am probably no worse off than in 2010.

  3. robertcp

    The rollercoaster cuts planned by the Tories do not sound like a good idea. Labour should stress this during the campaign.

  4. Leon Wolfeson

    Yes, I’m sure you’d like to imagine rolling in it.

    Meanwhile, for the financially literate, we’re facing deflation and the government is cutting spending. Which is idiotic, as the result of government borrowing to spend is…*drumroll* inflation.

  5. Leon Wolfeson

    But they also want the same cuts.

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