FTSE 100 slides as IFS warns UK borrowing will overshoot predictions by 2015
City Index February 6, 2013 10:15 PM
<p>The FTSE 100 has retreated as the IFS warns the UK’s borrowing will be more than expected by 2015.</p>
The FTSE 100 has lost ground in trading this afternoon (February 6th), after the Institute of Fiscal Studies (IFS) announced that the chancellor is borrowing more money despite planning for drastic cuts.
According to the IFS, the UK will have borrowed £64 billion more than anticipated by the time the next general election comes around, after weak growth damaged George Osborne's deficit reduction plan.
The UK's leading spending and tax authorities said today that public finances would also be in a worse state in 2015 than permitted under plans made by the previous Labour government to deal with the deficit.
IFS director Paul Johnson commented: "[Mr Osborne] is allowing borrowing to increase substantially in this parliament – allowing the automatic stabilisers to work – whilst promising another dramatic dose of public spending cuts in the next parliament."
At 15:10 GMT, the FTSE 100 slipped by 0.1 per cent to an index value of 6272.9 points.
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