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.’

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Business Services Senior Co-ordinator

Durham County Council
Grade 7 £31,015 - £34,811
Are you an experienced administrator who enjoys supporting people, leading a team and making sure services run smoothly? A fantastic opportunity has Durham
Recuriter: Durham County Council

School Secretary

Durham County Council
£26,403 - £28,598 pro rata (pay award pending)
Required from 1st November 2026   Kirk Merrington Primary School are looking to appoint a full-time school secretary due to the retirement of the curr Spennymoor
Recuriter: Durham County Council

Fleet Hire Desk Assistant

Durham County Council
£27,274 - £29,542
The Fleet Operations Team in Fleet and Depot Management are looking for a Fleet Hire Desk Assistant to join their team.   To assist the Fleet Services Durham
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£25,185 - £25,989 pro rata (pay award pending)
This role is permanent, term time only plus 2 weeks, 37 hours per week. We are looking for an experienced and qualified Teaching Assistant, who is hi Durham
Recuriter: Durham County Council

Classroom Teacher

Durham County Council
£32,916 - £45,352 pro rata (pay award pending)
Required
Recuriter: Durham County Council
Linkedin Banner