IFS Green Budget October 2018

In the IFS 2018 Green Budget, we discuss some of the issues confronting the Chancellor as he prepares for his third Budget, and the second Autumn Budget of this parliament. At the core of this year’s Green Budget is an analysis of the difficult challenges facing the Chancellor. A decade on from the financial crisis, economic growth remains weak, and the uncertainty surrounding the UK’s decision to leave the European Union continues to weigh heavily. At the same time, Prime Minister Theresa May has committed her government to ‘ending austerity’. We analyse the pressures on public services, as well as the options and risks for financing new spending through borrowing, tax rises or both. We also provide topical analysis of several other challenging policy areas. We present a detailed overview of where and how the UK spends its overseas aid budget and how this has changed over time. In keeping with the Conservative party’s manifesto commitment to deliver ‘homes for all’, we analyse the housing market facing young people and explore the policy options open to government. Finally, we consider the impact that Brexit may have on the UK’s trade with the EU, and how this will affect the industries, regions and workers of the UK.

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