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IFS says the Chancellor needs to explain his budget

A respected think tank has urged George Osborne to explain where the big cuts, pencilled in in yesterday's Budget will fall. The Institute for Fiscal Studies says that should be before the election. The Chancellor merely insisted future cuts would be no worse than those already achieved. Labour claimed he could only balance the books by increasing VAT or cutting NHS spending. An attempt by the Lib Dems to deliver an "alternative budget" ended in farce.

ITV News political correspondent Emily Morgan reports:

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Osborne 'in £1 million inheritance tax giveaway'

The Chancellor has drawn up plans to allow parents to leave homes worth up £1 million to their children without paying inheritance tax, according to leaked Treasury papers.

The Guardian stated it had seen documents that also showed the inheritance tax bill on properties worth up to £2 million would be cut by £140,000 under the scheme.

It is understood the measure will not feature in Wednesday's Budget. Credit: Dominic Lipinski/PA Wire

The papers, marked "sensitive", note the main beneficiaries of the plan - which would cost the Exchequer almost £1 billion a year - would "most likely benefit high income and wealthier households".

It is understood the measure will not feature in George Osborne's final Budget of the current Parliament tomorrow, but could be taken up by the Conservatives if they regain power after the General Election.

A Treasury spokeswoman said they had no comment on the report.

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