Darling criticised over budget deficit blowout - papers 11 Oct

The respected thinktank also criticised Alistair Darling's decision to add £2bn to investment spending in Tuesday's pre-budget report, something it described as an "unfunded spending increase". IFS director Robert Chote said that Mr Darling's most immediate problem was that the credit crunch and a weaker outlook for wage growth were expected to lose him £4bn in income tax revenue and £3bn in corporation tax revenue next year alone. He said that, in all, the fiscal position is due to deteriorate by about £13bn over the next three years, which will again delay the long-awaited time when the...