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

Shift Lead (Longlands) Adult Social Care -Night or days

West Northamptonshire Council
£28,016 - £29,513
Longlands Care home is situated in Daventry, we offer a happy and safe living environment in which our residents can enjoy an enhanced quality of life. Our Team of friendly and committed staff provide the highest level of care and specialise in supportin Daventry
Recuriter: West Northamptonshire Council

Night Care Support Assistant (Longlands)

West Northamptonshire Council
£25,447 - £25,849 (Pro rata)
Longlands Care home provides exceptional levels of support in nursing, residential and Dementia care. It is situated in Daventry, and it offers a wonderful living environment in which our residents can enjoy an enhanced quality of life. We have teams of Daventry
Recuriter: West Northamptonshire Council

Day Care Support Assistant (Longlands)

West Northamptonshire Council
£25,447 - £25,849
Longlands Care home provides exceptional levels of support in nursing, residential and Dementia care. It is situated in Daventry, and it offers a wonderful living environment in which our residents can enjoy an enhanced quality of life. We have teams of Daventry
Recuriter: West Northamptonshire Council

Grounds Maintenance Team Leader

Wakefield Council
£31,067 to £33,366, Grade 7
An opportunity exists in the Council’s Street Scene Services for a Grounds Maintenance Team Leader Wakefield, West Yorkshire
Recuriter: Wakefield Council

Health and Wellbeing Activator

Wakefield Council
£31,067 to £33,366, Grade 7
Wakefield Councils are looking to recruit into the role of Activator on a Full-Time basis. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.