IFS urges Rishi Sunak to extend support to tackle ‘triple challenge’ to economy

IFS urges Rishi Sunak to extend support to tackle ‘triple challenge’ to economy

Britain's foremost economics thinktank has urged Rishi Sunak to use next month's budget to announce a targeted extension of government support to tackle a "triple challenge“ to the economy from Brexit, Covid and global heating.

The Institute for Fiscal Studies said the chancellor needed to steer clear of raising taxes in response to record peacetime borrowing of about £400bn inflicted by the coronavirus pandemic and called on him instead to focus on supporting the UK's economic recovery from lockdown.

In an intervention as Sunak prepares to deliver the 3 March tax and spending set-piece in the Commons, the IFS said additional support was needed to help Britain adjust to the triple economic challenges presented by Brexit, Covid and meeting targets for net-zero carbon emissions by 2050.

The leading thinktank on the public finances said that despite record sums being borrowed this year, an extension in the multibillion-pound furlough wage subsidy scheme beyond the end of April was needed.

Having supported the wages of 10m jobs at more than 1m businesses since it was launched in March last year, the IFS recommendation echoes calls made by leading business groups, Labour and trade unions in recent weeks. The thinktank said that while wage support should be