Economic think tank backs Tory fiscal strategy

Date: 1st October 2008

A leading economic think tank has backed shadow chancellor George Osborne's fiscal strategy.

The Institute for Fiscal Studies' (IFS) director, Robert Chote, has given approval to the Conservative's policy of stricter City regulations and freezing of council tax.

The influential IFS is usually regarded as non-political, so the Conservative Party will likely consider this a victory over the government.

Mr Chote wrote in an article for the BBC: "The proposals to reform the fiscal policy framework announced by George Osborne would be a welcome improvement, although there is still much work to be done on the details.

He also criticised Gordon Brown's administration for permitting the Treasury to change its mind on when the economic cycle began and for allowing public sector net debt to reach perilously close to 40 per cent of national income.

"Whether it is the Conservatives who end up doing the job or not, the fiscal framework is certainly in need of repair," Mr Chote concluded.