Britain 'heading for new era of austerity', thinktank warns

Analysis of budget highlights deep cuts to spending for Whitehall departments and local government

Britain could be headed for a new era of austerity, the leading tax and spending thinktank has warned, after analysis of Rishi Sunak's budget revealed deep cuts in spending plans for Whitehall departments and local government.

The Institute for Fiscal Studies (IFS) said, despite the added pressures caused by Covid-19, areas of spending not singled out for special treatment by the Treasury were facing an 8% reduction in their budgets compared with pre-pandemic plans. Some of the departments now being lined up for fresh spending curbs - such as the Home Office and HMRC - had additional responsibilities as a result of Brexit, the IFS said.

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