Laura Sharman 03 September 2019

Chancellor needs an extra £5bn to cover spending promises, says IFS

The chancellor will need to find an extra £5bn of spending next year to meet the government's recent pledges, the Institute of Fiscal Studies (IFS) has warned.

A new report, published by the IFS ahead of tomorrow's Spending Round, finds an extra £5bn is needed just to avoid cuts to other public services.

It estimates that pledges on schools, police, NHS, defence and overseas aid will require at least £9bn more next year compared to this year.

It warns the Government has little idea how sustainable big spending decisions will be.

Figures published by the Office for Budget Responsibility (OBR) at the Spring Statement gave the Government £15bn of headroom against its target to keep borrowing below 2% of national income next year.

However, the IFS warned that making major fiscal announcements without new OBR forecasts could put public finances at risk.

Ben Zaranko, an author of the report, said: 'Significant sums are already pledged for schools and the health service, more is coming for the police, and there are commitments on defence and aid spending.

This spending round will, though, also need to consider very carefully the clear and growing need for funding in our justice system and in local government, including social care, where cuts over the past decade have been particularly severe.'

SIGN UP
For your free daily news bulletin
Highways jobs

Finance Officer - 12 month Fixed Term Contract

Essex County Council
£25081.00 - £27653.00 per annum + + 26 Days Leave & Local Gov Pension
Finance OfficerFixed Term, Full Time£25,081 to £27,653 per annumLocation
Recuriter: Essex County Council

Tutor

Essex County Council
Up to £30377.00 per annum + Pension
TutorPermanent, Part Time£30,377 per annum full time equivalent Location
Recuriter: Essex County Council

Principal Highway Engineer – Highway Condition Specialist

W.D.M. Limited
£65,000 - £80,000 based on experience
We are looking for a driven and experienced Professional Civil Engineer with a strong background in highways engineering to join our team. Bristol
Recuriter: W.D.M. Limited

Deputy Head of Pensions

London Borough of Richmond upon Thames and London Borough of Wandsworth
£48,873 - £62,451 dependents on experience
The Pensions Finance team has a variety of work shared in a small team giving the opportunity to get involved in every area. The team provides financial and investment support to Wandsworth Council’s £3bn pension fund, the Southwest Middlesex Cremato Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Adults Social Worker - Forensic Mental Health

Essex County Council
£37185 - £50081 per annum + Flexible Working
This position is open to Newly Qualified Social Worker's (NQSW) with relevant experience in Mental Health. The starting salary for NQSW's is £34,902 England, Essex, Wickford
Recuriter: Essex County Council
Linkedin Banner