£25bn hole will limit Philip Hammond's options in autumn statement, says IFS

Tax and spending experts predict slow growth and high inflation will lead to hole in public finances by end of current parliament

Britain's leading tax and spending experts have warned Philip Hammond that his options are limited in this month's autumn statement after predicting that slower growth and higher inflation will punch a 25bn hole in the public finances by the end of the current parliament.

The Institute for Fiscal Studies said that if economic forecasters were right about the impact of Brexit, the new chancellor would have to extend austerity after the next election in order to finally eradicate the budget deficit built up during the financial crisis of 2008-09.

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