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

Executive Director of Transport

Cambridgeshire & Peterborough Combined Authority
£128,216 – £156,241
Getting Cambridgeshire and Peterborough Moving Cambridgeshire
Recuriter: Cambridgeshire & Peterborough Combined Authority

Assistant Director – Children and Families

Sheffield City Council
£80,995 - £86,757
Our promise to Sheffield’s children and young people is that Sheffield will be a place where they belong, Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Assistant Director of City Transport

Sheffield City Council
£ to match our ambition
You’ll keep abreast of emerging approaches and best practice Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Director Of Growth

Royal Borough of Greenwich
up to £185,000
The Royal Borough of Greenwich is synonymous with iconic London landmarks, culture and outstanding service delivery. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Strategic Director of Resources

London Borough of Waltham Forest
CIRCA £180,000
We are now in a strong position to move forward with confidence. Waltham Forest, London (Greater)
Recuriter: London Borough of Waltham Forest
Linkedin Banner