‘Hard journey made worse by own goals’ – IFS

BRITAIN faces a “long, hard, unpleasant journey” that has been made worse by a “series of economic own goals”, economists have warned as they forecast Jeremy Hunt’s record high taxes are “here to stay”.

The Institute for Fiscal Studies (IFS) warned on Friday that the biggest drop in living standards will “hit everyone” but that “Middle England is set for a shock” as the Chancellor raises taxes as wages fall.

In comments that will further enrage Tories angered by the plans, the economic think tank’s director Paul Johnson said “higher taxes and a bigger state” are likely to stay over the “next several decades”.

But the Chancellor hit back, defending his “very Conservative package to make sure we sort out the economy” and arguing there is “nothing Conservative about ducking difficult decisions”.

Mr Johnson warned that the drop in living standards forecast is the “biggest fall in living memory” and comes “off the back of very poor income growth for many years”.

“This will hit everyone. But perhaps it will be those on middling sorts of incomes who feel the biggest hit,” he said.

“They won’t benefit from the targeted support to those on means-tested benefits. Their wages are falling and their taxes are rising. Middle England is set for a shock.”