IFS warning of 'hugely challenging' public service cuts

The impact of the Government's planned cuts in public services after the next election will be "hugely challenging", the IFS thinktank has said, warning against a "false sense that all is now well".

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Warning of 'hugely challenging' cuts in public services

George Osborne's planned cuts to public services aim to return the nation's finances to surplus by 2018/19. Credit: Oli Scarff/PA Wire

The impact of the Government's planned cuts in public services after the next election will be "hugely challenging", a leading economic thinktank has said, warning against a "false sense that all is now well".

The Institute for Fiscal Studies 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.

However, figures from Oxford Economics predicted 2.6% growth in GDP this year, raising the prospect that continued growth could remove the need for Mr Osborne's austerity plans to be implemented in full.

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