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UK facing period of falling wages and lower living standards, Institute of Fiscal Studies warns

The UK is facing austerity measures until the end of this decade amid falling wages and lower living standards, the Institute of Fiscal Studies has warned.

IFS Director Paul Johnson said the Chancellor has 'very little room for manoeuvre' because of the weakened growth forecast for the economy from the Office for Budget Responsibility.

It comes after the Chancellor delivered his Budget to the House of Commons on Wednesday.

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John McDonnell: Labour would keep sugar tax

John McDonnell said Labour 'supported the sugar tax in principle'. Credit: Good Morning Britain

Labour's Shadow Chancellor John McDonnell has said if his party is elected at the next election it will not abolish the sugar tax announced in yesterday's Budget.

Speaking on Good Morning Britain, Mr McDonnell said Labour supported the reasoning behind the tax but did not think it would work unless it was part of a wide health strategy designed to tackle obesity.

We welcome the sugar tax but the problem is it's not part of an overall strategy to tackle obesity and whilst George Osborne is introducing the sugar tax, he's cutting £200m from the public health budget.

In principle we support it but we have to see the detail as it rolls out.

– Shadow Chancellor John McDonnell

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