Nov 6, 2019

Next government 'set to break spending rules'

High borrowing means the next government is set to bust rules on spending, the Institute for Fiscal Studies has said. The gap between what the government spends and what it receives was now set to be much higher than expected, the think tank warned. The IFS said Mr Javid would have faced a far more challenging "Fiscal backdrop" if his budget had gone ahead. It said that back in March, the Office for Budgetary Responsibility - whose independent forecasts inform government spending decisions - had predicted that borrowing would "Continue to fall". Based on its own sums, it said it now expected the deficit - the difference between what the government spends and what it receives - to be higher in each of the next five years, exceeding £55bn this year and £50bn next. Expect a particular emphasis on government spending for the future: on infrastructure, on building up the nation's assets - investment spending, whether it's on hospitals or on trying to solve climate change.

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