RSSeNEWS to be determined...

The government has described a new analysis by the Institute for Fiscal Studies (IFS) of the impact of its June 2010 budget as "selective".

The IFS had said that budget measures were "regressive" rather than "progressive" as the Chancellor claimed. Its analysis (pdf format, opens in new window) shows that over the next five years on average the poorest households will lose more than those with income in upper-middle range in absolute terms, and more still in percentage terms.

But the Treasury responded by saying that the IFS analysis "is selective, ignoring the pro-growth and employment effects of Budget measures – such as helping households move from benefits into work, and reductions in corporation tax."

In June, the IFS disputed the Chancellor's assertion that the budget would hit the most wealthy the hardest. In particular, it highlighted the exclusion of cuts to housing benefit, Disability Living Allowance and tax credits in the budget's analysis of income distribution.

For its new analysis, which is funded in part by the End Child Poverty campaign, IFS researchers used data published since the budget by the Department for Work and Pensions. The IFS also factored in estimates of the impact of all the benefit cuts announced in the Budget.

But deputy PM Mr Clegg described the IFS analysis as "partial". He commented "If you just look at who is receiving benefits then, in a sense, you don't ask the most important question of all, which is how you can relieve poverty and make Britain fairer by getting people off benefits and into work."

The question of how to tackle inequality is hugely sensitive, particularly as the coalition government has put the challenge at the heart of its policy-making.

• The Guardian's datablog has published the key data from the IFS and has asked if readers can "do anything with the data?"