IFS study: UK household budgets 'face 10-year squeeze'

Household budgets could be squeezed for the next 10 years as the impact of tax rises and cuts is felt, the Institute for Fiscal Studies (IFS) has warned.

Its survey suggests families have seen the biggest fall in living standards in 30 years in the last financial year.

It warned those on lowest incomes were likely to suffer a further significant reduction in their spending power.

The Treasury said plans to cut the deficit had maintained low interest rates and helped struggling families.