Michael Burton 22 November 2023

Autumn Statement: Unprotected departments face further cuts

Autumn Statement: Unprotected departments face further cuts image
Image: Daniel Gale / Shutterstock.com.

So-called ‘unprotected’ Whitehall departments face further budget tightening despite a pledge in the Autumn Statement to increase public sector productivity.

The Office for Budget Responsibility’s fiscal outlook published today says ‘it is mainly due to the Chancellor’s decision to leave departmental spending broadly unchanged’ that borrowing is reduced by £27bn in 2027/28 compared to its March forecast.

The OBR estimates that day-to-day spending in departments which are not protected like health and care, education, defence and international development would need to fall by 2.3% a year in real terms from 2025/6 after the end of the current Spending Review to meet current forecasts. The OBR says this would ‘present challenges’ and mentions the 11 s114 notices issued by councils as an example of ‘signs of strain.’

It adds that use by councils of current reserves for current spending increased by £2.3bn in 2022/23 for the first time since 2019-20 and predicts that ‘there will be further drawdowns during the current Spending Review period, of £1.5bn in 2023/24 and £0.8bn in 2024/25 ‘compared to an assumption of no drawdown in both years in our March forecast.’

The OBR says that ‘delivering these spending plans while maintaining or improving public services would require significant improvements in public sector productivity.’

The Autumn Statement says that ‘the government has therefore driven even greater efficiencies than those assumed at Spending Review 2021 to manage down these pressures and ensure departments can live within their settlements and deliver the service outcomes the public expect.’

Cllr Sir Stephen Houghton, Chair of the Special Interest Group of Municipal Authorities (SIGOMA) said: ‘With a 1% rise in spending on public services set for the coming years, unprotected departments like local government will face another round of damaging austerity, following the decade of cuts since 2010.’

SIGN UP
For your free daily news bulletin
Highways jobs

Finance Assistant - Banking, Controls & Reconciliation

Essex County Council
Up to £25081.00 per annum
Finance Assistant - Banking, Controls & Reconciliation Fixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Park Operations Assistant

Essex County Council
Up to £25959.00 per annum
Park Operations AssistantPermanent, Part Time£25,959 per annumLocation
Recuriter: Essex County Council

Science Teacher

Durham County Council
£32,916 - £51,048
Science Teacher M1- UPS3 £32,916 - £51,048 Permanent, Full time Required as soon as possible The Woodlands EHN Team is seeking to appoint a qualified Ferryhill
Recuriter: Durham County Council

Hospitality and Catering Instructor

Durham County Council
£27,663 - £37,875 Instructor Scale B
WHAT IS INVOLVED? The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 a Newton Aycliffe
Recuriter: Durham County Council

Lawyer Contracts and Procurement

Durham County Council
£47,181 to £51,356 p.a. (Grade 13)
An exciting opportunity has arisen for a Contracts and Procurement Lawyer to work at Durham County Council as part of the Legal and Democratic Service Durham
Recuriter: Durham County Council
Linkedin Banner