Wages and living standards set to fall, warns IFS

Institute for Fiscal Studies

The Institute for Fiscal Studies has warned that wages and living standards are set to fall after Chancellor George Osborne revised down his growth forecasts.

The IFS warned if the Budget forecasts were right "we should all be worried".

"This will lead to lower wages and living standards, not just lower tax revenues for the Treasury," it said.

Mr Osborne blamed global factors for the cut, but Labour said his credibility was "completely shot".

Labour also accused him of cutting taxes for the wealthy at the expense of the poor.

The independent forecasting body, the Office for Budget Responsibility (OBR), revised the UK growth forecasts down for the next five years in Wednesday's Budget, and Mr Osborne warned the outlook for the global economy was "markedly weaker" with the UK "not immune" to a slowdown.