Public funds 'may be cut by third'

Spending on police and other services may be cut by a third under Government plans with perhaps more than a million public-sector job losses

Spending on police and other services may be cut by a third under Government plans with perhaps more than a million public-sector job losses

First published in National News © by

Spending on services like police, defence, transport and justice could be cut by a third by 2017/18 under Government spending plans, a report warned.

The plans suggest 1.2 million job losses in the public sector by that date, 300,000 more than predicted by the Government's official forecasters, according to the Green Budget published by the Institute for Fiscal Studies (IFS).

The respected economic think-tank said Chancellor George Osborne's failure to hit deficit reduction targets means tax rises or "substantial" additional cuts in welfare benefits are likely after the 2015 general election to avoid "hard to contemplate" cuts in Whitehall budgets.

The fiscal position may force the Chancellor to raid pensioner benefits, the NHS, schools or overseas aid, hitherto protected from cuts, said the report.

The IFS said: "Over the last 30 years, tax rises announced in the year after a general election have averaged £7.5 billion. Considering this trend, and in the context of the current fiscal situation, further tax rises following the next election would not be surprising."

Mr Osborne is due to borrow £64 billion more than he planned by 2015, due to the poor performance of the economy, and borrowing is likely to be higher this year than in 2012, the IFS found.

With the public finances failing to come into balance as quickly as Mr Osborne had hoped, IFS director Paul Johnson questioned whether the Chancellor can continue to shield the NHS, schools and overseas aid from cuts.

The Government said it will continue to protect these three areas from cuts in the spending review for 2015/16, now being negotiated but Mr Johnson said extending protection further would mean spending on other departments - like the Home Office, Defence and Environment - falling by a third by 2017/18.

If the budget for defence equipment was protected, as Prime Minister David Cameron has suggested, that figure would rise to 35%.

Whitehall departments have so far relied heavily on job losses to meet the Chancellor's austerity demands, and if they continued to do so at the same rate, 1.2 million public sector jobs could go by 2017/18, compared with the 900,000 forecast by the Office for Budget Responsibility, said the IFS.

Comments (3)

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7:59am Wed 13 Mar 13

simmo707 says...

BOROKEN BRITAIN UNDER TORIES – ARE THE TORIES COMPETENT WITH OUR ECONOMY
Time and again we either hear Cameron or another Tory trying to ram home the Economy is safe in their hands and unsafe in Labours .All we get from Tories is “we have reduced the deficit” and our Austerity measures are necessary for the benefit of the Economy .Listening to 3 Economic Advisers from Europe including our own Mathew Hancock who admitted that Britain is exporting more outside the EU today because of the Financial Crisis in Europe shore up the belief ‘you have to speculate to accumulate ‘ .If Britain concentrated more on Investment in Jobs and Housing and less on the Deficit we would be better off .As normal we only get a better picture from outsiders that have nothing to gain from Lies and Deception .The EU is dragging us down with it. www.brokenbritainund
ertories.com
BOROKEN BRITAIN UNDER TORIES – ARE THE TORIES COMPETENT WITH OUR ECONOMY Time and again we either hear Cameron or another Tory trying to ram home the Economy is safe in their hands and unsafe in Labours .All we get from Tories is “we have reduced the deficit” and our Austerity measures are necessary for the benefit of the Economy .Listening to 3 Economic Advisers from Europe including our own Mathew Hancock who admitted that Britain is exporting more outside the EU today because of the Financial Crisis in Europe shore up the belief ‘you have to speculate to accumulate ‘ .If Britain concentrated more on Investment in Jobs and Housing and less on the Deficit we would be better off .As normal we only get a better picture from outsiders that have nothing to gain from Lies and Deception .The EU is dragging us down with it. www.brokenbritainund ertories.com simmo707
  • Score: 0

6:52pm Mon 18 Mar 13

Another Landless Peasant says...

So when the Uprising occurs later this year there will be no Police to stop us...erm...I mean them!
So when the Uprising occurs later this year there will be no Police to stop us...erm...I mean them! Another Landless Peasant
  • Score: 0

12:18pm Thu 4 Apr 13

simmo707 says...

BROKEN BRITAIN UNDER TORIES – McVEY - DISABILITY OR DECIMATION MINISTER
McVey you being interviewed on channel four acted and presented yourself more like a ‘woman scorned ‘rather a Government Minister responsible for the Welfare of the Disabled .You made a point of the interviewer getting his facts right but that is what you should have done instead of the Tory Rhetoric you spouted .Discretionary Payments – you didn’t seem to understand what the subject was all about ,well be enlightened there will be a pot of £150 million nationwide and that will have to be applied for concerning circumstances not generally catered for .That amount will run out after about six months leaving others to go without . www.brokenbritainund
ertories.com
BROKEN BRITAIN UNDER TORIES – McVEY - DISABILITY OR DECIMATION MINISTER McVey you being interviewed on channel four acted and presented yourself more like a ‘woman scorned ‘rather a Government Minister responsible for the Welfare of the Disabled .You made a point of the interviewer getting his facts right but that is what you should have done instead of the Tory Rhetoric you spouted .Discretionary Payments – you didn’t seem to understand what the subject was all about ,well be enlightened there will be a pot of £150 million nationwide and that will have to be applied for concerning circumstances not generally catered for .That amount will run out after about six months leaving others to go without . www.brokenbritainund ertories.com simmo707
  • Score: 0
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