Autumn Statement: 'Major cuts needed' to finance Osborne's giveaways

The Institute for Fiscal Studies (IFS) has warned major cuts to public services will be needed to finance the measures announced in the Autumn Statement.

In response to the Chancellor's statement on Thursday, the IFS said Osborne's pre-election giveaways are funded by short-term revenue raisers, and further cuts will be needed to balance the books. It noted the personal allowance increase, the stamp duty cut and the employers’ national insurance cut are being partly funded by banks offsetting their losses against corporation tax. From April 2015, the amount of taxable profit banks can use to offset prior losses will be capped at 50% with Osborne describing the current system, which could have led to some banks not paying corporation ta...