Overview

• UK's next government faces the most challenging debt burden since the 1950s, warns the Institute for Fiscal Studies (IFS).
• Chancellor Jeremy Hunt hints at tax cuts in the upcoming spring Budget, but IFS warns that these could risk future tax hikes or spending cuts.
• Both the Conservative and Labour parties have promised to reduce debt as a fraction of national income, but this will be difficult due to high debt interest payments and low expected growth.
• IFS urges political parties to be transparent about the trade-offs they face and to prioritize public services over tax cuts.
• IFS director Paul Johnson suggests that if parties are promising tax cuts, they should also indicate where spending cuts will fall.