IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”

A new report today reveals education spending will be slashed by more than 13 per cent over this parliament - the largest cut since at least the fifties.

A new report today reveals education spending will be slashed by more than 13 per cent over this parliament – the largest cut since at least the fifties.

Contrasting the cuts ahead with Labour’s record investment in education, the Institute for Fiscal Studies (IFS) says:

Public spending on education in the UK grew rapidly during the 2000s. Over the decade between 1999–2000 and 2009–10, it grew by 5.1% per year in real terms, the fastest growth over any decade since the mid-1970s.

As a result, it rose from 4.5% of national income in 1999–2000 to reach a high point of 6.4% in 2009–10. Going forwards, we estimate that public spending on education in the UK will fall by 3.5% per year in real terms between 2010–11 and 2014–15. [See Table 1]

This would represent the largest cut in education spending over any four-year period since at least the 1950s, and would return education spending as a share of national income back to 4.6% by 2014–15.

Table 1:

Increases-in-UK-education-spending-April-1956-March-2015
This morning’s IFS analysis also finds:

As with most areas of government spending, education spending is set to shrink in real terms over the Spending Review period… [Estimated] total public spending on education in the UK will fall by over 13% in real terms between 2010-11 and 2014-15. This represents the largest cut in education spending over any four-year period since at least the 1950s. [See Graph 1]

The cuts will be deepest for capital spending and higher education, followed by 16-19 education and early years provision. Schools spending is relatively protected, and schools with the most deprived intakes are likely to see real-terms increases in funding. However, the majority of schools will see real-terms cuts.

Graph 1:

UK-education-spending-1955-1956-2014-2015-actual-and-forecast
The IFS concludes:

Having risen by historically large amounts during the 2000s, the UK’s education budget is now set for an historically large fall over the next few years.

Schools will see smaller real-terms cuts than other areas of education spending, while cuts to public spending on higher education will be more than offset by higher tuition fees. The biggest challenges lie ahead for the early years, youth services and 16-19 education, where spending is set to fall by around 20% in real terms.

Of course the key question is what these cuts in financial resources will mean for the outputs of the education system, such as young people’s exam results or earnings potential.

Indeed. The dire consequences of the government’s savage education cuts will not be fully felt for years; the futures stolen, ambitions thwarted, lives ruined, will only become truly apparent once the damage has been wrought, the horrors irreversible.

See also:

Gove’s three priorities? Gove, Gove, GoveAlex Hern, October 4th 2011

Fees, cuts… Is this what Cameron means by “giving young people back their future”?Shamik Das, September 14th 2011

IFS questions Osborne’s “short sighted” failure to invest in science and skillsShamik Das, September 5th 2011

Priced out of the playground: Tory Wandsworth to charge kids to playShamik Das, May 12th 2011

Toby Young is wrong about the cuts and wrong about the marchNicola Smith, March 29th 2011

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39 Responses to “IFS: Education spending will “shrink” at fastest rate “since at least the 1950s””

  1. sharpteach

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/X1HIHBNm by @ShamikDas

  2. sharpteach

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/X1HIHBNm by @ShamikDas

  3. Political Planet

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: A new report today reveals edu… http://t.co/OhrUHXWJ

  4. Political Planet

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: A new report today reveals edu… http://t.co/OhrUHXWJ

  5. Christian Wilcox

    More on Tory education cuts: http://t.co/hwC6vOZ8 . We need skills in a recession, so why Adult Ed & #HE? It seems daft. #Croydon #Labour

  6. Christian Wilcox

    More on Tory education cuts: http://t.co/hwC6vOZ8 . We need skills in a recession, so why Adult Ed & #HE? It seems daft. #Croydon #Labour

  7. Croydon feed

    More on Tory education cuts: http://t.co/YzEUM59L . We need skills in a recession, so why Adult Ed & #HE? It see… http://t.co/15CB1jz1

  8. -

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/X1HIHBNm by @ShamikDas

  9. Jim Knight

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  10. martinhume

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  11. martinhume

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  12. True_Belle

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  13. True_Belle

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  14. Michael Payne

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  15. Michael Payne

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  16. Michael

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s” – http://t.co/oAoMGAen

  17. Michael

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s” – http://t.co/oAoMGAen

  18. cuchulaindundee

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s” http://t.co/mgapfzXv

  19. Bob Harrison

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  20. LiverBird

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/X1HIHBNm by @ShamikDas

  21. Martin Littler

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  22. vernon4gedling

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  23. sirianblair

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  24. strats118

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  25. Rochester/Strood CLP

    IFS: Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/X1HIHBNm by @ShamikDas

  26. Ian Cruise

    "@leftfootfwd: IFS:Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/Am8TAOJ1 'Headteachers take note

  27. Alan Simpson

    Progressive? “@leftfootfwd: Education spending will “shrink” at fastest rate “since at least the 1950s”: http://t.co/rD3nyDMB by @ShamikDas”

  28. Citizen K

    IFS show education set to shrink in real terms – Tories break promise of future to next generation on jobs, EMA etc http://t.co/jAjfb9LJ

  29. Alex Braithwaite

    RT @leftfootfwd: IFS: Education spending will “shrink” at fastest rate “since at least the 1950s” http://t.co/aNmLItns

  30. Ashley Harnett

    RT @leftfootfwd: IFS: Education spending will “shrink” at fastest rate “since at least the 1950s” http://t.co/goy740FB

  31. Rob the crip

    Opposition you can do as you like because you do not have to sort out the mess, no of course labour did not leave us in a mess Gordon was a hero flying from phone box to phone box saving the banks the same banks who now need more billions, the money tree had a bad drought this year.

  32. Adam Langleben

    RT @leftfootfwd: IFS: Education http://t.co/Y1DI2yvF

  33. Leon Wolfson

    And remember, kids, that keeping your job as a teacher under the Tories means exam results and only exam results. Teaching to the test will rise very sharply again, and employers will need to even more teaching of basic actual skills!

    (And universities waste even more time imparting them…at huge cost to the kids!)

  34. Stephen W

    It’s almost as though there were a huge deficit . . . .

    But what’s this?

    “Schools will see smaller real-terms cuts than other areas of education spending, while cuts to public spending on higher education will be more than offset by higher tuition fees.”

    So Schools will see little cuts, and schools in the most disadvantaged areas will see their funding increase, and universities will also see their funding increase.

    But surely . .

    “The dire consequences of the government’s savage education cuts will not be fully felt for years; the futures stolen, ambitions thwarted, lives ruined, will only become truly apparent once the damage has been wrought, the horrors irreversible.”

    . . .

    No, not it won’t. And you know it, camply, melodramatic writing to one side. Please stop embarrassing yourselves with the mock concern and (years in advance) shroud waving.

  35. Shamik Das

    Dear Stephen, there is no ‘mock concern’ here, our fear for the future is genuine.

  36. Stephen W

    Shame it’s not grounded in reality. I suppose tabloidesque melodrama is more exciting to write. This stuff reads like the online branch of the Daily Mirror.

    Shame, this used to be an intelligent website.

  37. Leon Wolfson

    @3 – No, Universities have seen a *massive* fall in funding in the last year.

    Keep on lying, Tory.

  38. Stephen W

    Are you nuts or just trolling? Or have you actually bothered to read the article?

    In case you’ve missed it, that section was a quote from the article.

    Now I do not know who wrote this article but I doubt they are a Tory. Idiot.

  39. Look Left – Cameron’s Euroscepticism comes home to roost | Left Foot Forward

    […] ‘Trends in education and schools spending’ (pdf), which revealed education spending will be slashed by more than 13 per cent over this parliament, the sharpest cut since at least the […]

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