It has been reported that independent pay review bodies will recommend a 5.5% pay increase for teachers. PA

Pay rises for teachers and NHS staff could cost an extra £3 billion if the government implements a 5.5% increase to wages, according to the IFS.

Pay rises for teachers and NHS staff could cost 'extra £3bn'

The Institute for Fiscal Studies says neither party is offering a "properly credible prospectus".

Think-tank doubts credibility of both Labour and Tory tax and spend plans

Borrowing is on course to top £50 billion next year, the Institute for Fiscal Studies said.

George Osborne's fiscal rules leave him little room for error as he tries to balance the books, the Institute for Fiscal Studies says.

Read our Political Editor Peter MacMahon's latest general election blog on today's report by the Institute for Fiscal Studies. 

After long-awaited good news on the economy, an esteemed report paints a worrying picture of the huge problems the country still faces.