Press Story

IPPR has reacted to reports that the Treasury is submitting to the Office for Budget Responsibility a plan for billions of pounds in spending cuts to welfare and other departments.

Avnee Morjaria, associate director for public services at IPPR, said:

“The world has changed fundamentally since the government took office, and its approach to fiscal policy and the spending review will need to reflect that. Defence spending may yet have to rise further and faster, and the radical policy changes now coming from countries like Germany show the scale of the challenge.

“The UK needs a fiscal strategy fit for the volatile world we now find ourselves in. While cuts and savings can fill some immediate gaps in the Chancellor’s budget this isn’t a viable strategy for the future.

“The cuts that are being trailed today would come with significant risks. Some public services are already in crisis, and further cuts could undermine government commitments on health, education, crime and more. Waiting lists in the NHS are stubbornly high, councils are on the verge of bankruptcy, backlogs in the criminal courts are at record levels and prisons are at bursting point.

“Welfare changes could deliver real savings over time by supporting people into work, but a ‘cuts first’ approach is likely to undermine efforts to reform the system and worsen child poverty just as the government sets out its new child poverty strategy. We know that the government will be judged on public services and whether families feel better off - cuts will make both more difficult to achieve.”