As Chancellor George Osborne prepares for his keynote statement on fiscal policy and the economy the IFS Green Budget assesses some of the issues he will have to deal with.
This analysis finds that the shape of the state today is very different from that of 30 years ago and, going forward, spending on health, pensions and long term care is set to rise fast.
The Office for Budget Responsibility's first 'Fiscal Sustainability Report' - published today - sets out some of the long-term challenges facing the UK's public finances. Demographic pressures alone could raise spending by £80 billion in today's terms by 2060, with a particularly striking increase required in health spending. Tax revenues, especially from oil and petrol, are also under pressure. Long term fiscal sustainability will require hard choices even after the unprecedented fiscal retrenchment planned for the next few years.
