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

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Qualified Social Worker - Adults

West Northamptonshire Council
£39,190 - £41,797 D.O.E
Based
Recuriter: West Northamptonshire Council

Qualified Social Worker - Adults

West Northamptonshire Council
£39,190 - £41,797 D.O.E
Based
Recuriter: West Northamptonshire Council

Life Skills Officer - Supported Accommodation

North East Lincolnshire Council
£29,093 PLUS Local Agreement Allowance of 6.5% of Salary
We have an unwavering commitment to Children in our Care. Grimsby
Recuriter: North East Lincolnshire Council

Facilities Officer

Ashfield District Council
£42,839 - £46,142 per annum
We are an ambitious District Authority based in Kirkby in Ashfield Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner