THE Tories suffered yet another blow yesterday when the Institute of Fiscal Studies (IFS) criticised plans to extend their controversial right-to-buy policy to housing association tenants.

The extension of the policy to up to 1.3 million householders is a centrepiece of the party’s manifesto — seeking to emulate the electoral success of the original policy that helped sweep Thatcher to power in 1979.

But the IFS warned that the plans could reduce affordable housing and create wider gaps between rich and poor areas of towns and cities.