IFS warns: UK Chancellor needs to raise £35 billion, spending plan credibility faces test

(1) The London-based Institute for Fiscal Studies (IFS) has warned, ahead of the UK government's budget announcement later this month, that UK Chancellor John Healey must raise £35 billion to realize the Labour government's ambitious spending plans. (2) The think tank noted that although Healey may have more leeway than expected in adhering to fiscal rules, the credibility of the government's spending plans still faces scrutiny. (3) The institution stated that unless the government takes intervention measures, inflation will squeeze public spending, leading to underfunding across government departments. (4) IFS Director Helen Miller said: "If you want to increase spending without cutting public services, then you must consider raising taxes."