The Institute For Public Policy Research: “We have yet to hear how the government will solve the big challenges facing the country”
“Even after the Budget, which raised taxes and increased borrowing, the government still had to make tough choices today.
“There are much needed big increases in investment in infrastructure, especially transport and housing, which will make a huge difference to the economy – helping to drive growth and living standards. There are also welcome increases in funding for public services, including the NHS and schools.
“But in other areas we have yet to hear how the government will solve the big challenges facing the country: social care, universities and local authorities all face tough years ahead after years of under-investment and cuts, for example. If the government wants to tackle these challenges, as voters expect it to, it will have to look again at taxes over the coming years.”
Centre for Cities: “Government understands the importance of empowering big cities”
“Today’s Spending Review sends a strong signal that the Government understands the importance of empowering big cities to achieve broad-based national growth. Investment in public transport, housing, and innovation will support metro mayors with the tools to deliver real, lasting change.
“The economic underperformance of the UK’s largest cities costs the country £50 billion a year. Closing this gap is essential to raising living standards across the country.
“Today’s announcements on economic growth are welcome.”
TaxPayers’ Alliance: “Politicians have failed to meet the challenge”
“We now know there is going to continue to be harsh austerity for taxpayers as they stare down the barrel of yet more devastating tax hikes in the Autumn, all to fund a profligate, wasteful and bloated public sector.
“Yet again politicians have failed to meet the challenge of fixing ballooning welfare bills and getting people back to work, meaning the inevitable fiscal crunch looms large.
“Spending has to be brought under control so that we can cut taxes and bring down the national debt – but that means politicians have to be on the side of taxpayers and businesses, which unfortunately very clearly isn’t the case.”
Conservative Environment Network: “The Chancellor’s spending splurge has heaped yet more pressure on the public finances”
“Given the government’s cuts to nature schemes like biodiversity net gain and the water restoration fund, increased spending for nature was welcome, albeit overdue.
“However, there remain significant questions about the farming budget. Although funding for the Environmental Land Management schemes (ELMs) has increased, this increase is entirely due to the phasing out of the EU legacy subsidy scheme for farmers.
“Farmers steward 70% of our land. We simply can’t restore nature without incentivising farmers – both large and small – to adopt more sustainable practices. But with some of the legacy EU subsidies now not going into ELMs, the overall farming budget is set to be cut. This will leave some farmers unable to access the schemes, putting nature recovery and farm businesses at risk.
“More generally, the Chancellor’s spending splurge has heaped yet more pressure on the public finances. She had remarkably little to say about how she would make public spending on the environment go further. There need to be commitments to cut red tape for green infrastructure, to enable farmers to enhance nature more affordably. The overall reliance on public spending is a high-stakes gamble that could backfire on the government and the environment. The government must look to leverage more funding for nature and beyond from the private sector.”
Growth Commission: “Public spending remains out of control and is set to grow”
“Today’s Spending Review shows scant evidence that the Chancellor understands how sustainable growth is achieved. It focused on centralised spending rather than seeking to grow the cake. There was nothing to encourage private endeavour and no rolling back of regulation, at a time when the Government is saddling the country with more employment regulation without any sign of an improvement in public sector productivity. It was all about state control and direction, which will do nothing to strengthen the weak edifice that is the UK economy.
“The Chancellor claims to have put growth at the heart of her thinking. Unfortunately almost everything she has done since taking office has had the opposite effect. Today’s Spending Review embeds this further, strengthening state control while weakening private enterprise and individual choice.
“Public spending remains out of control and is set to grow at a further 2.3% in real terms, a rate far faster than that of the private sector, with an estimated budget increase announced for 2025-6 that equates to public spending of over £48,000 per household. Does that represent anywhere close to good value for the quality of service received?
Local Government Association: “We expect government to provide urgent clarity on how it plans to address high needs deficits”
“It is positive that the Spending Review delivers on some key LGA asks. Funding announced for children’s services and SEND support will help more children get the right support and avoid reaching crisis point. We are also pleased at increased investment in the Affordable Homes Programme and the commitment to a 10-year rent settlement, which will support councils to invest in maintaining existing homes and ramping up vital new build programmes. Extra investment in places to support regeneration, transport and infrastructure is good news for residents and communities in these places.
“We will analyse the detail to assess the full impact on councils and communities. A recommitment to multi-year local government funding settlements is essential for financial planning while efficiency and innovation continues across local government. However, all councils will remain under severe financial pressure. Many will continue to have to increase council tax bills to try and protect services but still need to make further cutbacks. While government faced tough choices, future funding for adult social care is good news but a lack of significant extra government money needed to meet immediate pressures is worrying.
“We expect government to provide urgent clarity on how it plans to address high needs deficits, which are projected to rise to £5 billion next year, as part of its forthcoming SEND reforms. Over half of councils have warned they will become insolvent next year when the statutory override flexibility ends and we continue to urge government to write off these deficits.
“Public service reform and investment in prevention – especially in social care and SEND – can reduce costs and demand, and councils want to partner with government on this agenda. Council financial pressures are also exacerbated by an outdated funding system, so we look forward to the consultation on reform and a roadmap to a sustainable, long-term financial model for local government.”
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