Labour: IFS report shows government's failure

Rachel Reeves MP, Labour's Shadow Chief Secretary to the Treasury said the Green Budget, released today by the IFS, shows the government's plan has failed.

The IFS report shows how badly the Government's plan has failed. By choking off the recovery the Chancellor is now borrowing billions more than he planned as the costs of economic failure mount.

The IFS also confirms that changes this April – including a tax giveaway to millionaires while tax credits are cut for millions of working families – are regressive and will see the richest tenth gain most while the bottom 50 per cent lose.

This kind of trickle-down economics just isn’t going to work. After two and a half years of stagnation it's time we finally had a plan for jobs and growth to kick-start this flatlining economy. The longer this economic failure continues the longer families and businesses will pay the price."

Read More: IFS delivers grim verdict on state of economy

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IFS warns over public sector

The Institute for Fiscal Studies has warned that government borrowing will rise, public sector spending cuts will increase. The OECD has also said the UK must do more to boost growth and tackle inequality, which it says are key to economic recovery.