Chancellor George Osborne is facing a \u00a330 billion black hole in his budgetary plans if he is to honor the Conservative Party\u2019s general election pledges and still meet the party\u2019s deficit-slashing targets by 2020, the Institute for Fiscal Studies warns.<\/p>\n
The IFS\u2019 scathing assessment of Osborne\u2019s spending pledges surfaced in its pre-election analysis, a mere 15 days ahead of Britain\u2019s general election.<\/p>\n
The tax think tank\u2019s report, published on Thursday, found the Tories would need to make the cuts from government departments by 2020. The IFS said this \u00a330 billion black hole would exist even if Prime Minister David Cameron\u2019s party managed to raise \u00a310 billion from yet-to-be clarified welfare cuts, and a further \u00a35 billion from its proposed measures to clamp down on tax-avoidance.<\/p>\n
Examining the party\u2019s economic policy proposals, the IFS argued the cuts the Conservatives had failed to account for would amount to a 30 percent reduction in funding for government departments between 2010 and 2020.<\/p>\n
\u201cDespite planning for more austerity, the Conservatives\u2019 detailed tax policies amount to a net giveaway, their detailed social security measures would only provide a 10th of the cuts that they have said they would deliver, and their commitments on aid, the NHS and schools would increase spending in these areas,\u201d<\/em> the IFS said.<\/p>\n The IFS\u2019 assessment of Labour\u2019s spending plans was more forgiving. The think tank\u2019s report said the party\u2019s less austere deficit-slashing targets would only require a modest \u00a31bn in further spending cuts over the coming parliament if Shadow Chancellor Ed Balls achieved his objective of drumming up an additional \u00a37.5 billion through the party\u2019s tax avoidance measures.<\/p>\n