According to the Institute for Fiscal Studies (IFS), UK is facing the deepest, longest and sustained period of cuts to the public services after the Second World War. For the first time, the spending cuts of consecutive six years have been endured.

As per some government departments, the budgets will affect the rich more than the poor. The Labour Party has already identified 70% of the necessary fiscal consolidation by the year 2016. According to the IFS, the planned cuts in the public services implemented by Mr. Osborne would reverse back the entire growth done by the Labour Party earlier.

He has explained that the cuts will hit the poor households hard than the rich. The government is under tremendous pressure after the conclusion of the IFS. The changes announced in the budget would obviously raise the number of households and individuals in the UK and would also face very high tax rates on their earnings. Now this issue has become a headache for the newly formed coalition government as well as for Mr. Osborne who has represented his first budget.