Public finance experts are warning of a hit to George Osborne’s deficit-reduction plans as a result of the recent stock market turmoil globally.
The Institute for Fiscal Studies said that falling share prices could threaten the chancellor’s plans, as could lower wage growth. The possibility of the UK leaving the European Union is also a risk factor.
IFS director Paul Johnson said that uncertainty about the fiscal forecasts could mean that Osborne might have to make further cuts to spending or raise taxes in order to achieve a surplus in 2019-20.
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