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”
Newsbot9
Keep conflating someone self-employed and apparent breach of IR35 rules, which are different. And no, it is and remains an offence which means you have to pay the difference and a fine.
Keep on attacking the BBC.
Newsbot9
Right right, you don’t care you don’t pay tax, etc.
And I see, junk mail. Yea, that’s a real winner.
Absolutely_Passionate
I haven’t attacked them, I’m just pointing out their double standards.
Things the BBC criticise outside, are okay if within the BBC. Like as you say, IR35 infringements.
Racism is another example.
Absolutely_Passionate
I do care, and I do pay tax.
Try to think of a better way to promote your business if you don’t like to use leaflets. You could advertise in the local supermarket notice board but I don’t think that would be anywhere near as effective as leafleting.
Newsbot9
Near as effective at making yourself a pariah for spamming, absolutely. And yes, you most certainly DO care about demolishing the 99%, and I’m sure you pay a little VAT. And?