Local government could face annual spending cuts averaging 2.4% by 2029, with services set to deteriorate as a result, a new report has warned.
A study by the Institute for Government and Nuffield Foundation has described the Government’s inheritance on public services as ‘extremely precarious.’
It said the government’s spending plans from April 2025 onwards will mean that most services could be performing worse in 2027/28 than in 2019.
The report also warned that Labour’s ‘incredibly tight spending plans’ will mean the settlements for local government and other unprotected areas of public spending will decline by an average of 2.4% per year in real terms.
However, the think tanks also argued there were steps the government could take to reform public services.
‘It can shift its approach, focusing on outcomes, rather than inputs; on prevention, rather than acute provision; on capital, rather than day-to-day spending; on front-line innovation, rather than top-down command and control; and on the contribution of staff to performance, rather than their cost to the exchequer.’
