we begin here in the uk, where the institute for fiscal studies is warning the chancellor big and painful spending cuts will be needed to put the country s finances on a sustainable path. the independent think tank predicts with a weaker economy and promised tax cuts, there will be a large shortfall in revenue. it calculates the government would have to spend £60 billion a year less by 2026 27. the treasury says its tax cuts and reforms would deliver sustainable funding for public services . more for public services . detail on that on october sist. joining me now is janet mui, head of market analysis, rbc brewin dolphin. they have quite a lot of detail as to why they believe the government will not have the money it needs to go ahead with plans? money it needs to go ahead with lans? ., ., ., plans? thanks for having me, first of all plans? thanks for having me, first of all before plans? thanks for having me, first of all before the - plans? thanks for having me, firs
They have quite a lot of detail as to why they believe the government will not have the money it needs to go ahead with plans? money it needs to go ahead with lans? ., ., ., plans? thanks for having me, first of all plans? thanks for having me, first of all before plans? thanks for having me, first of all before the - plans? thanks for having me, first of all before the mini - first of all before the mini budget the government was already in a bad situation, in terms of deficit because we have already spent so much during the pandemic, the economy, the key driver of the government plan, is to generate revenue is the assumption we will generate growth every year, and that is higher than what we are accustomed to, and it s very difficult for the current economy like the uk to generate that kind of growth, thatis generate that kind of growth, that is based on the idea of trickle down economics, where higher spending and high earners will spend more and it will trickle down to the rest