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Nick Pearce, Director at IPPR, said:

“The Chancellor’s fiscal rules are a busted flush. The economy needs greater stimulus now, offset by more rapid consolidation later, and the fiscal framework should support that approach.

“The increases in capital investment are welcome. But more help with childcare, rather than increases in the Personal Tax Allowance, should have been given to working families, who will also now see their tax credits cut further in real terms.

“The Chancellor has also missed the opportunity to introduce fair wealth taxes. In reality, only 4% of the fiscal consolidation in 2015/16 comes from taxes, while 96% comes from public spending and welfare cuts.”

Ed Cox, Director of IPPR North, said:

“The Autumn Statement contains some small measures to enhance local growth with the Single Pot proposal a clear precedent to decentralise economic development powers and funding. But to really heal the nation’s fiscal health the Chancellor must accept that northern prosperity is national prosperity and take more radical measures to shift investment in London and the South East northwards.”

Notes to Editors:

The Autumn Statement announcement is at:
http://www.hm-treasury.gov.uk/as2012_documents.htm

IPPR’s plan for deficit reduction is available here:
http://ippr.org/publication/55/1831/deficit-reduction-averaging-a-plan-b-for-fiscal-tightening

IPPR’s plan for growth is available here:
http://ippr.org/publication/55/1826/going-for-growth

IPPR North’s Northern Economic Futures Commission is available here: http://www.ippr.org/publication/55/9949/northern-prosperity-is-national-prosperity-a-strategy-for-revitalising-the-uk-economy

Contacts:

Richard Darlington, 07525 481 602, r.darlington@ippr.org

Mavis McKenzie Cecil, 07929132716, m.mckenzie-cecil@ippr.org