A leading economic think tank has warned that Britain is facing extended austerity measures for another year with lower living standards and falling wages under the recently proposed budget.
The Institute for Fiscal Studies (IFS) issued the warning in its analysis released on Thursday one day after UK Chancellor of the Exchequer George Osborne delivered Budget 2016 to the House of Commons.
“Yet another year of austerity penciled in,” IFS Director Paul Johnson said, adding, “The underlying deterioration in the public finances can’t be smoothed away.”
Johnson also cautioned that the budget will benefit the richest in the society, saying, “The biggest gainers were those towards the top of the income distribution, with most towards the bottom broadly unaffected.”
He further accused Osborne of being “disingenuous” about his tax cuts for the lowest paid, noting that lower productivity growth could make the UK poorer in the future.