UK austerity ‘could last until 2020′

<p>Austerity could remain in vogue in the UK for many years.</p>

Austerity could be on the agenda for the UK for many years to come, a new report has warned.

The Institute for Fiscal Studies and the Institute for Government pointed out that the budget deficit target is as far away today as it was in 2010, when the coalition government came to power pledging to cut the deficit through its austerity programme.

Chancellor of the exchequer George Osborne is committed to his austerity programme and his opposite number Ed Balls recently stated in a major speech that he would stick to the Conservative MP's spending plan initially if Labour wins the next general election.

But the International Monetary Policy has regularly called for Mr Osborne to change his course, warning economic growth is being damaged by his cuts.

"It would not be surprising if not just 2015 but also 2020 was an 'austerity' election," said the Institute for Fiscal Studies and the Institute for Government in a joint report.

The UK narrowly avoided a triple-dip recession earlier this year by recording growth of 0.3 per cent for the first quarter.

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