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

Team Manager

Durham County Council
Grade 14 £51,928 - £56,293
Do you want to lead a passionate team dedicated to supporting parents to achieve meaningful and sustainable change and help more children to remain sa Durham
Recuriter: Durham County Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £26,016 - £26,847
We are looking to appoint a full time Clerical officer/Receptionist within Business Services to provide a professional, effective and efficient recept Durham
Recuriter: Durham County Council

Early Years Children in Care Caseworker

Durham County Council
Grade 9 £36,581 - £40,444
Are you passionate about improving outcomes for young children and ensuring every child has the best start in life? We are seeking an experienced and Spennymoor
Recuriter: Durham County Council

Family Group Conference Lifelong Links Co-ordinator

Durham County Council
Grade 9 £36,581 - £40,444
Are you passionate about empowering families, strengthening relationships, and helping children and young people build lifelong support networks? We Durham
Recuriter: Durham County Council

Attendance and Pastoral Lead

Durham County Council
£31,015 pro rata
This position is fixed term for 1 year until 31 August 2027. The Governors of our fully inclusive, successful and welcoming school seek to appoint a Consett
Recuriter: Durham County Council
Linkedin Banner