Heather Jameson 07 November 2019

Public spending still lower than pre-recession, says IFS

Public spending still lower than pre-recession, says IFS image

Planned hikes in public spending would still leave spending in 2020-21 3% lower than it was in 2010-11, according to the Institute for Fiscal Studies.

Writing in a blog, IFS director Paul Johnson and deputy director Carl Emmerson said plans for increased spending were ‘large’ and come on top of this year’s spending increases.

But they warned the cash boost was not reflected across all public services. They wrote: ‘The Department for Health and Social Care will have seen its day-to-day spending budget rise by almost a quarter in real-terms. Spending on education has followed overall spending.

‘In contrast spending in many other areas has been subject to deep cuts. For example, the day-to-day spending budget of the Ministry of Justice in 2020–21 is a remarkable 23% lower than what was spent in 2010–11.’

The blog was published yesterday, on the day the Chancellor should have revealed his Budget and the Office of Budget Responsibility planned to put out its latest forecasts. However, both fiscal events have been cancelled due to the General Election.

The IFS pair suggest the chancellor ‘would have been keen to point out that reductions to borrowing since 2009–10 have meant that in 2018–19 borrowing in cash terms was back to the level seen in 2007–08.’

The speculate that further planned spending increases may be funded through increased borrowing rather than tax hikes, as the increases in the Spending Round were.

They add: ‘With interest rates very low (and the debt interest burden actually lower today than it was in 2007-08) then we may be in a position to cope with higher debt if it is accumulated as a result of effective investments which result in higher growth. However, debt cannot go on rise forever.’

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Oxford City Council
Up to £161,499 + benefits
As Chief Executive, you’ll uphold our commitment to diversity and inclusion and lead us to achieve our goals. Oxford, Oxfordshire
Recuriter: Oxford City Council

Senior Strategy Adviser

Essex County Council
£39168.0 - £45664 per annum
This is a fixed term / secondment opportunity on an initial 6-month contract basis One of the largest and most dynamic local authorities in the UK, England, Essex, Chelmsford
Recuriter: Essex County Council

Social Workers x2 - Family Support & Protection - Basildon

Essex County Council
£30906.0 - £42254.0 per annum + + Free Parking & Great Benefits
These positions are open to Newly Qualified Social Workers (NQSWs) and Experienced Social Workers. The starting salary for a NQSW is £28,330.50 per England, Essex, Basildon
Recuriter: Essex County Council

Social Workers x2 - DBIT - Essex County Council - Basildon

Essex County Council
£30906.0 - £42254.0 per annum + + Free Parking & Great Benefits
D-BIT The Divisional Based Intervention Teams (D-BIT) have been operational in Children's Social Care (CSC) since early 2012. The service has a prov England, Essex, Basildon
Recuriter: Essex County Council

Strategic Transport Team Leader

Telford & Wrekin Council
£39,880 - £42,821 per annum
Do you want to be leading the strategic development of Telford’s transport network? Telford, Shropshire
Recuriter: Telford & Wrekin Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue