🔻The UK Institute for Fiscal Studies (IFS) has warned that the sharp rise in prices following the war between the United States and Israel against Iran has created a major challenge for Jeremy Hunt’s successor, the UK’s Chancellor of the Exchequer, in preparing his first budget.

According to the think tank, inflation higher than expected could reduce the real value of the budget allocated to public services and force the government to choose between cutting spending, raising taxes, or a combination of both.

The Institute for Fiscal Studies has asked the government to put forward credible budget plans and not to forecast spending cuts in the coming years that it does not intend to implement in order to make the budget look balanced.

The UK Treasury has declined to comment on what it called “rumors and speculation.”

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