IFS: public services to 'feel the squeeze'

By Michael Burton | 24 March 2022

The public sector faces a renewed squeeze from the summer due to inflation and higher than budgeted pay rises according to an Institute for Fiscal Studies (IFS) analysis of yesterday’s spring statement.

Higher inflation will reduce planned increases for Whitehall departments by 12.5% requiring an extra £4bn-£6bn but Chancellor Rishi Sunak made no commitment to more spending, indicating a preference for tax cuts.

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