If the coalition is to meet its spending targets it will have to make further cuts to departmental budgets.
Public sector job losses could be significantly more than one million, according to a report published yesterday by the Institute for Fiscal Studies.
Due to the government’s failure to hit its savings targets, job losses in the public sector could be 300,000 higher by the end of 2017/18 than predicted, according to the IFS’s annual analysis of the government’s spending plans.
Within the IFS’s report, however, was also contained the prediction that, if the government continues to ring-fence the NHS budget, overseas aid and schools, spending cuts will need to be significantly more severe if the coalition is to meet the targets of its fiscal consolidation plan.
As things stand, just to keep his current savings plan on track, George Osborne will need to make much larger cuts to departmental budgets than he originally intended.
As we can see from the graphs below, the bar on the left represents what the government intends to cut while the bar on the right represents what the government will need to cut unless it reconsiders its policy of ring-fencing select budgets or increases government revenue through tax rises.
As the report phrases it:
“If such further cuts to departmental spending are not possible without a decline in the quality or quantity of public services that is unacceptable to politicians or to voters, then higher borrowing, further tax increases or social security spending cuts – perhaps after the next general election – must be on the cards.”
132 Responses to “More spending cuts on the way if coalition is to meet savings targets”
LB
Not surprising when you hide the debts off the books, and spend people’s pension money.
Absolutely_Passionate
Much of the public sector is grossly over staffed, over paid and over pensioned (not to mention incompetent). There’s plenty of deadwood to be cut.
Mr Reasonable
Oh, I see George ‘Absolutely Passionate’ Osborne is back on here again! Isn’t it time for your lie down, George?
Newsbot9
Stop confusing your policies with anyone elses ffs! Blaming the government for your private pension embezzlement…
Newsbot9
Yes, start with the NHS and schools in your world, of course. Not to mention the people providing services to the 99%, completely unnecessary!
Keep opposing paying public staff, given.they’re already grossly underpaid for their qualifications, and they will be able to (HORROR) retire one day. And they have some time left to do their jobs. Can’t be allowed.
Keep lashing out at anyone who doesn’t work against others.
The reality is, of course, that the Coalition will need to cut basic services thanks to their death cycle economic policies. And you’ll cheer the poverty being caused on.