Latest Public Sector News

07.12.12

IFS forecasts further welfare cuts

More welfare cuts will be needed to make £27bn savings in the next eight years, new analysis from the Institute for Fiscal Studies (IFS) shows.

Some areas of the public sector will be faced with “inconceivable cuts”, the IFS found, to protect Whitehall departments during the next phase of austerity measures.

The analysis also showed that the poorest 20% of the population would see their incomes cut by more than 1.5% as a result of the Autumn Statement, while the richest 10% would see a 0.5% reduction, despite Chancellor George Osborne’s assertion that the cuts were fair.

In the event that the chancellor again decided to spare the NHS, schools and international aid from cuts after 2014, the IFS calculated that every other area of spending would have to fall by 16% in inflation-adjusted terms in the three years after the 2015 election.

Paul Johnson, the IFS’s director, said: “On top of what has happened in this spending review period, that would take cuts in unprotected departments to an average of over 30%. That looks close to inconceivable. There are big choices on health and welfare, crucially surely including benefits for pensioners, still to be made. And it is hard to believe that there won't be more tax rises to come.”

Rachel Reeves, shadow chief secretary to the Treasury, commenting on the IFS analysis of the autumn statement, said: “The IFS has exposed who is paying the price for George Osborne's economic failure. Their figures show that middle and low earners lost out from the autumn statement, with the poorest 40% losing more than the richest tenth.”

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com 

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Utilising data to best deliver meaningful public services

14/11/2019Utilising data to best deliver meaningful public services

Public Sector Executive’s Matt Roberts explains how living in a modern, interconnected world, as we do, means public sector organisations cannot afford to ignore the rol... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >