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For the 4th successive year Oxford Economics has collaborated with the Institute for Fiscal Studies on the Green Budget. This long-running and highly respected publication provides an overview of the outlook for the UK economy and the public finances. The key conclusion from this year's report is that the UK is set to enjoy a year of strong growth and low inflation, with the collapse in the oil price being equivalent to a large VAT cut for consumers. Furthermore, if our estimation of the size of the output gap is correct, the UK could continue to enjoy strong growth through the medium-term and the next government may be able to reduce the pace of fiscal consolidation further down the line.
The areas covered include:
The evolution of the public finances and risks for the future
Analysis of what has been happening to earnings and the labour market
Options for increasing tax or cutting spending on social security
The outlook for public services spending and the choices over spending allocation
About the IFS
The Institute for Fiscal Studies was founded in 1969. Established as an independent research institute, IFS was launched with the principal aim of better informing public debate on economics in order to promote the development of effective fiscal policy. Through the establishment of rigorous independent research, for example the IFS Green Budget and Post Budget analysis, IFS successfully opened up debate about public policy to a wider audience and influenced policy decision making.