Borrowing graphic
Media playback is unsupported on your device

IFS paints bleak view of UK economy

Spending on public services may have to be cut by up to a third within five years and more than a million public sector jobs could be lost, according to the Institute for Fiscal Studies.

The research body warned that a weak economy meant the government was set to borrow far more than it forecast when it came into office.

Stephanie Flanders reports.

Go to next video: IFS predicts need for tax rises