Press Story

Major cuts to departmental spending will be required in this summer's Spending Review, according to new analysis from the think tank IPPR.

IPPR has taken the envelop announced by the Chancellor in yesterday's Budget and spread the cuts across department to see what the likely impact will be if those cuts are spread evenly. IPPR makes two calculations, one that removes the ring-fence from the NHS, schools and overseas aid budget, and one that keeps those ring-fences in place.

The analysis shows that of the £11.5bn that the Government plan to cut, £8.5bn will come from departments in 2015/16. If those cuts were spread evenly (and the current ring-fences retained):

Defence = £1.65bn cut
Local Government = £1.46bn cut
Business, Innovation and Skills = £930m cut
Education (excluding schools) = £850m cut
Home Office = £500m cut
Justice = £460m cut
Transport = £300m cut
Scotland = £600m cut
Wales = £360m cut
Northern Ireland = £200m cut

Nick Pearce, IPPR Director, said:

"This is the scale of the battle that the 'National Union of Ministers' is going to have to have with the Treasury this summer. If these cuts go ahead, it means a major further reductions in spending on housing, further and higher education, early years and other local government services."

Notes to editors

These figures are for 'Departmental Expenditure Limits' (DEL) and exclude capital spending. They are in 2014/15 prices.

Spending on NHS, schools and overseas aid (including for Scotland, Wales and Northern Ireland) are excluded in the calculation above, in line with current Government policy.

A graphic showing these calculations is available here:

Contacts:

Richard Darlington, 07525 481 602, r.darlington@ippr.org