The Rest Is Money 189. What Would The Outgoing Boss Of The IFS Do If He Was Chancellor?
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Jul 13, 2025 Join Paul Johnson, the outgoing head of the Institute for Fiscal Studies and a leading expert in public finances, as he tackles pressing economic questions facing the UK. Discover why the nation struggles with debt and budget deficits and whether austerity measures helped or hindered progress. Johnson reflects on lessons learned from the pandemic and Brexit, critiques the current tax system's complexity, and proposes a fairer approach to taxation. His insights on global austerity experiences add a seasoned perspective to the conversation.
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Paul Johnson's IFS Departure
- Paul Johnson loved working at the IFS and found leaving it a huge wrench.
- He believes leadership rotation is healthy and left the IFS in capable hands.
COVID Furlough Overextended
- The furlough scheme during COVID went on for too long, which the IFS didn't criticize enough at the time.
- This over-generosity was not clear due to uncertainty and national anxiety during the crisis.
Early Austerity Then Damage
- Early austerity spending cuts were manageable, but after about three years, damage to public services became severe.
- Long-term austerity hurt justice, social care, and local government, showing the limits of cuts.