Chancellor Rishi Sunak should ensure next month’s budget secures the economic recovery from the COVID-19 crisis to date rather than try to start fixing the public finances, according to a report.Analysis by the Institute for Fiscal Studies (IFS) and Citi Research warns of a hit to lower-income households ahead, in particular, if the furlough scheme is not extended beyond April.
The study, which examines the options facing Number 11 Downing St, suggests a failure to maintain employment support would risk a spike in the jobless rate above its current 5% as struggling companies collapse under the weight of additional wage pressure.
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