Think-tank fear on debt

The Government faced an attack on its stewardship of the public finances today after the Institute for Fiscal Studies said most other countries had done more to tackle debt before recession struck.

By The Newsroom

Published 19th Apr 2010, 00:47 BST

Updated 19th Apr 2010, 00:50 BST

The think-tank said Labour had cut the level of borrowing and debt inherited from the Conservatives in 1997 but most other nations had gone further in strengthening public finances.

Its briefing said: "While the UK public finances were in better shape when the financial crisis began than they were when Labour came to power, the UK was in a worse position relative to most comparable countries."

High debt levels going into crisis meant the UK would have a weak fiscal position after a deterioration in public finances in three years only exceeded by Ireland and Iceland. Public borrowing is forecast at 167bn for the 2009-10 financial year.