IFS: Fiscal gloom makes cuts crucial

The respected Institute for Fiscal Studies has endorsed government plans for spending cuts and tax rises to try to reduce the UK's budget deficit.

But it also said that spending cuts could be "formidably hard to deliver".

The warning comes in the IFS' Green Budget which aims to assess the government's position ahead of the March Budget.

Speaking to the BBC, Paul Johnson, from the IFS, said that "the cuts are bad, but that reflects the bad situation that we are in fiscally".

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