IFS: Spending review will impact poor more than rich

Carl Emmerson, acting director of the Institute of Fiscal Studies, issues his verdict on the impact of the spending review:

“Some of the biggest losses from yesterday’s announcements will be felt by those who would have benefited most from the public services that are being cut.

“The Treasury’s analysis shows that those cuts to public services announced yesterday that they were able to model will impact on those in the bottom half of the income distribution more than the top.

“So the Treasury’s analysis shows both the welfare cuts and public service cuts announced yesterday being regressive.”