UK warned public spending will outstrip revenues by 2030

Public sector spending will outstrip revenues by 2030 if services do not become preventative rather than reactive, according to a new IPPR briefing.

The report – The Long View; public services spending in 2030 - highlights the current pressure on public spending budgets due to the austerity drive, but also warns of an ‘unsustainable squeeze’ going forward.

The Office for Budget Responsibility estimates that the number of people aged over 85 is set to more than double over the next 25 years, while it’s estimated that up to 48% of men and 43% of women in the UK could be obese by 2030. This would cost billions in health and age related spending.

Matthew Fell, CBI director for Competitive Markets, said: ‘We cannot afford to bury our head in the sand on public services reform, otherwise when the UK emerges from austerity it will face a double whammy of rising pressures on public spending and falling tax receipts.

‘Tinkering around the edges or just going after low hanging fruit will not be enough. As a country we’ll have to take major strategic decisions about our public services if we are to keep the books balanced and meet social needs.

‘We need to decide which services we prioritise, how we make services more preventative, rather than simply reactive, and how we make best use of the expertise of the private and voluntary sectors.’