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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Ugobus Driver

Essex County Council
Up to £25959.00 per annum
Ugobus DriverPermanent, Part Time£25,959 per annum full time equivalent Location
Recuriter: Essex County Council

Neighbourhood Highway Group Manager

Devon County Council
£74,825 per annum
Devon County Council (DCC) is looking for an inspirational individual to lead and direct the Neighbourhood Highway Group. Devon
Recuriter: Devon County Council

Neighbourhood Highway Manager

Devon County Council
£60,234 per annum
The successful applicant will bring clarity of vision, a strong professional commitment to continuous improvement, and the ability to empower others. Devon
Recuriter: Devon County Council

Senior Technical Officer - Community Projects

Kirklees Metropolitan Council
£29,540 - £37,280
Do you have an interest in highway safety and have some knowledge of Traffic and Highway Law? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner