The view from the Institute for Fiscal Studies

It’s the halftime coffee break here at the launch of the Institute for Fiscal Studies’ Green Budget, so I thought I’d send CoffeeHousers a quick update. But first, just to be clear, that’s green meaning green, not green meaning environmental. This is the IFS’s annual, different-hued version of the Treasury’s Red Book. It’s their overall take on the economy and public finances.

So far, there has been little that will surprise or disconcert George Osborne as he prepares his own Budget: the picture is expectedly grim. As John Walker, chairman of Oxford Economics, put it in his warm-up routine on the general economy, 2011 was ‘disappointing’ and 2012 will be ‘another difficult year’. Lending is weak; business confidence is fragile; unemployment is set to rise; and, by Oxford Economics’ forecasts, the economy will grow by only 0.3 per cent this year, as opposed to the official figure of 0.7 per cent.