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”
Gill
Or there is this one, a lady who was very articulate, worked all her life, good jobs etc, large house, accident at work one day, bang! Loses everything, Health, Job, House, Dignity, Pride, is left with brain and spinal damage, unable to write, talk, suffers extreme constant pain, unable to walk more than a few steps at a time, or stand for a few seconds, whilst still being investigated for CSF leaking from her nose and severe headaches that paralyse her she was refused all benefits and found ‘Fit for Work!’ She had to live off Christian Aid food Parcels! These are not people that watch Jeremy Kyle, drink Stella Artois, go to the Pub, have Tattoos and Body Piercings are Obese and eat McDonalds and live off your money you silly person. We all pay our Taxes, I do not think you are responsible for keeping every Unemployed, Sick and Disabled person in food money are you? Think about it you dont even pay 0.001% of it! So stop being so cruel and vulgar and assuming you understand what is going on, I would be happy to explain it to you if you want to hear.
I wondered if you were an MP as you were extremely unhappy in answering the original question, everyone assumes people are Living the life of Riley on Benefits but I could not pay all my living expenses out of £56.25 and I am happy to admit it 🙂 My electric alone is £146 a month! So if you could advice me how I can advice someone, I would most appreciate it. Some seem to think it is too much for the poor disabled to have.
Absolutely_Passionate
I’m getting the impression that you never really wanted me to help you with your budgeting, but rather just wanted to vent your spleen over the benefits system.
Perhaps you should direct your ire towards the people who have defrauded the system of billions of pounds with their bogus claims. It it were not for them, there would be more money available for genuine cases and they would not be required to jump through hoops to prove their eligibility.
Assuming you were not just putting up hypothetical cases just to make a point, have you ever used the “entitled to” website https://www.turn2us.entitledto.co.uk/ ?