IFS Warns of £28bn Gap and ‘Brutal’ Spending Review
The Institute for Fiscal Studies says John Healey needed to set aside another £28bn a year to cover inflation and reach 3% of GDP on defence by 2030. IFS director Helen Miller warned of “a spending review that looks pretty brutal for some departments”. Healey has since said there is no timetable for cutting welfare in this parliament.
“Public service spending plans look extremely tight. They don’t look to me like plans that this government would want to deliver,” Miller said. Departments have already been told to find 1% cuts to fund the Defence Investment Plan. On Today, Healey said “there will be a reduction in the benefits bill”. He later told Channel 4 that “we’ve not set a timetable for that”. The OBR forecasts welfare spending rising from £334bn last year to £431bn by 2030. Reviews by Alan Milburn on youth employment and Stephen Timms on disability benefits are now the government’s main hope of slowing that rise.