IFS Zooms In: The Economy

Over the past few weeks, devolution has moved back to the centre of British politics. Andy Burnham has made the case for a “rewired Britain”: shifting power away from Westminster and Whitehall, creating a new “No 10 North” in Manchester, and giving local leaders a much bigger role in shaping economic policy. But what does devolution actually mean? Who would power be devolved to? What responsibilit...

What makes a job “good”? Is it pay, flexibility, progression, security, purpose, autonomy, or the people you work with? Policy debates about inequality often focus on wages and getting people into work. But jobs are about much more than income. The quality of work affects people’s health, wellbeing, productivity, family life and future opportunities. In this episode, Helen Miller is joined by Jona...

The UK is one of the most geographically unequal countries in the developed world. People living in London and the South East tend to have higher incomes, higher levels of education and better health outcomes than people elsewhere in the country. But why did Britain become so regionally unequal? How much of the divide is driven by the shift away from industry and towards services? What role has pu...

Around 80% of people think the gap between those on high and low incomes is too big. But only around 40% think the government should redistribute income from the rich to the poor. Why is there such a gap between concern about inequality and support for action to reduce it? In the second episode of our mini-series on inequality, we ask why people care about inequality, whether they distinguish it f...

In the first episode of our new series, we set out the big picture on inequality in the UK. We look at what has happened to income and wealth inequality and how Britain compares with other countries. But inequality is not just about money. It shapes people’s opportunities, education, health, family life and where they live. Some gaps have narrowed over time, while others remain stubbornly wide - a...

Britain’s public finances are under pressure. Public debt is high, borrowing remains high, and the government is spending far more on debt interest than in the past. Taxes are heading towards historic highs, while public services remain under strain and demand on the state continues to rise. In this episode, we set out the fiscal backdrop that will shape British politics over the coming years. Who...

Conflict in the Middle East has pushed up energy prices in the UK. Even if the war ends soon, prices may not return to pre-war levels, and government could still face pressure to support households. But the problem runs deeper than the current crisis. Even before the latest shock, the UK had some of the highest electricity prices in the developed world. Why is electricity so expensive here? How mu...

Local government affects almost every part of our daily lives: bins, roads, planning, housing, schools, social care, public health, libraries, parks and more. But despite this, local elections are often discussed mainly as a test of national politics - with far less attention paid to what councils actually do, what councillors can change, and why so many councils are under such severe financial pr...

In a few weeks, voters in Wales will choose the next Welsh Government in what could be a historic election. With Labour’s long dominance under pressure, this episode examines the fiscal backdrop to the campaign and the difficult choices facing whoever takes power. Helen is joined by Joe Rossiter, Co-Director of the Institute of Welsh Affairs, and IFS economist David Phillips, to discuss how Wales...

Scotland receives significantly more funding per person for devolved public services than England, helping to pay for policies like free university tuition and smaller school class sizes. But despite that advantage, performance in parts of health and education remains under pressure, and Scotland’s fiscal outlook is becoming tighter. In this episode, Helen is joined by Mairi Spowage of the Fraser...

The state pension age is rising. It is currently 66, and by 2028 it will reach 67. But what does that actually mean for the people approaching retirement, and does it really mean everyone will have to work longer? In this episode, Helen is joined by Jonathan Cribb and Heidi Karjalainen to examine one of the biggest questions facing the pensions system: how high should the state pension age be? The...

For decades, pensioners were one of the poorest groups in Britain. That is no longer true. Today, the average pensioner is at least as well off as the average working-age person, and in wealth terms many are far better off. In this episode, Helen Miller is joined by Jonathan Cribb and Heidi Karjalainen to examine what the data really say about pensioner incomes, wealth and living standards. Where...

Helen Miller is joined by IFS colleagues Ben Zaranko and Bee Boileau to discuss the Spring Forecast. The headline numbers haven’t moved much since the autumn, but that stability may not last. With conflict in the Middle East pushing up oil and gas prices, the UK faces a potential negative shock: higher inflation, pressure on interest rates, and a tougher outlook for households, businesses and the...

Fiscal rules can sound technical, but they shape some of the biggest choices in economic policy: what we spend today, what we invest for tomorrow, and how we share costs across generations. In this episode of IFS Zooms In, Helen is joined by Ben Zaranko to unpack why governments use fiscal rules, what the UK’s current rules are designed to do, and why - despite repeated promises - debt has continu...

On average, students now leave university with just over £50,000 in student loan debt. Repayments are income-contingent: many graduates will repay little or nothing, while others repay 9% of their income above a threshold for decades, often watching the outstanding balance rise. That design has led some to argue the system is unfair and to argue that students were mis-sold loans whose terms have s...

Inflation has fallen a long way from its peak - but many people still feel worse off, and price rises have remained stubbornly above the Bank of England’s 2% target. So what actually caused the big inflation spike, how close are we to “normal”, and what does that mean for households?   Helen is joined by David Miles (OBR and former member of the Bank of England’s Monetary Policy Committee) an...

The UK minimum wage is one of the biggest economic policy changes of the past few decades. Introduced in 1999 at £3.60 an hour, it’s now over £12 and it shapes pay for a large share of the workforce. But what has it done to jobs? And if firms pay higher wages, where does the money come from - higher prices, lower profits, or higher productivity? In this episode, Helen is joined by Eduin Latimer (I...

The NHS holds a unique place in British life: a source of national pride, and the single biggest public service in England. This year it’s set to cost over £200 billion, around £3,500 per person, more than we spend on education, defence, justice and transport combined. And yet, despite sustained funding increases and around a quarter of a million more staff than in 2019, concerns about performance...

Moving into 2026, the government faces a critical period of delivery. After 18 months in power and several major fiscal events behind them, the focus is shifting from setting policy to seeing it through. However, with unemployment reaching 5.1% and a series of high-stakes reviews underway, the road ahead remains complex. In this episode, we are joined by Christine Farquharson and Tom Waters to exa...

As ever the big-picture choices in the Budget dominated media coverage - but some of the most interesting changes were buried in the detail. From electric vehicles to tourist tax, how much do these quieter tax shifts really matter? In this episode, we dig into the lesser-noticed policies: why the government is offering upfront EV grants while planning a per-mile tax, how tweaks to salary sacrifice...

This week on IFS Zooms In, host Helen Miller is joined by IFS economists Ben Zaranko and Christine Farquharson to unpack one of the biggest Autumn Budgets in years. With seventy-five policy measures, major tax and spending changes, and a striking shift in the economic forecasts, this was a Budget that surprised almost everyone. Helen, Ben and Christine break down: Why the expected “fiscal repair j...

As the Chancellor prepares her Budget, attention is turning not just to how she could raise more tax - but how she might cut spending. Where does the government actually spend its money? Why is it so difficult to reduce that spending in practice? And what would it take to genuinely pare back the size of the state? Helen Miller is joined by IFS colleagues Ben Zaranko and Tom Waters to unpack the re...

The bond market plays a crucial role in shaping government spending decisions - but how much power does it really have? With a Budget around the corner, are investors or Rachel Reeves setting the limits on fiscal policy? In this episode, we unpack how the government borrows, why it’s so expensive right now, and what “fiscal credibility” really means. Joining Helen are Jack Meaning, Chief Economist...

As the Chancellor prepares for her next Budget, attention is turning to how more tax revenue could be raised. What options are on the table - and what would they mean for households, businesses and the wider economy? Helen Miller is joined by IFS colleague Stuart Adam and tax expert Dan Neidle to explore the choices facing the Treasury. They discuss options from income tax and frozen thresholds to...

Why are chocolate-covered shortbread and plain shortbread taxed differently? The UK’s VAT system is full of bizarre inconsistencies that make it complex, inefficient, and unfair. In this episode, we dive into how VAT works, why economists tend to love it in theory, and why the UK’s version falls short in practice. We explore zero and reduced rates, exemptions, myths about regressivity, and discuss...