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”
Absolutely_Passionate
Are you confusing me with Ken Livingstone?
Absolutely_Passionate
1.You will not need high level connections to buy a bucket and sponge!
2.You should never harass drivers!
3. Just print some flyers and circulate them to your potential customers offering a good service at a fair price, at a time that suits them. No need for harassment. Think positive.
Newsbot9
Why would I confuse you with a hard left regressive? Your views are hard right, not left. Admittedly, I have about as much use for his ideology as I do yours…
Newsbot9
1. To get legal permission to operate as a car cleaner in most areas does indeed need permission. And useless wiping dirt around can indeed be cheap…
2. That’s why you’re advocating it it then.
3. Ah, spam/leafletting as an offence as well as harassment!
Keep playing up criminal activity, trying to get people arrested. Positive for you, since you get to slam the poor more.
Absolutely_Passionate
My goodness!
Leafleting is not illegal, otherwise all the political parties would be breaking the law.
If Alan Sugar had been as negative as you he would now be living on welfare benefits.