The key feature of last week's Budget was the chancellor's optimistic assumption that, despite faltering economic growth, an increase in borrowing to keep his spending plans on track is not a big problem.
Last week's Budget did not contain much in the way of large new announcements. What did attract much media attention, however, were the chancellor's latest forecasts for borrowing. Brown predicted he would continue to meet his fiscal rules without either reining in his spending plans or implementing further tax increases.
Authors
Carl Emmerson
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
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