Simon Hayes of Barclays: “A sovereign debt crisis is not the elephant in the room. Maybe it’s the Yak in the room.”

IFS expects higher tax revenue than PBR 2009. Also the government is UNDERSPENDING by billions. Added together we have a deficit £10bn lower! First good news all day!

Apart from the yak.

If the economy grows as Treasury expects, IFS figures produce slightly better deficit & debt projections. But if Barclays are right, things will be horribly worse.

Their recommendations – more fiscal consolidation to 2015- BUT NOT IN THE FIRST YEAR.

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