Key findings

  • Underpinned by an assessment that it must both deliver a surplus in order to reduce debt and do so via spending cuts, the government is set to reduce the size of the state towards historic lows
  • Subjective choices about the split between DEL and AME, consumption and investment and different services and groups fundamentally alter the shape of the state over time
  • In particular, the nature of the post-crisis consolidation – allied with demographic changes – is serving to increase the share of overall spending on older people and health while reducing the share going to working-age families and economic growth
  • This may or may not be the right balance to strike, but there is a danger that we fail to check in on these developments until after they occur – what do we want the state to do?

Further reading

More, more, more
Putting the Autumn Budget 2024 decisions on tax, spending and borrowing into context
·
Camron Aref-Adib, Mike Brewer, Molly Broome, Tom Clark, Alex Clegg, Nye Cominetti, Adam Corlett, Emily Fry, Sophie Hale, Lindsay Judge, Zachary Leather, Jonathan Marshall, Charlie McCurdy, Louise Murphy, Felicia Odamtten, Cara Pacitti, Simon Pittaway, Hannah Slaughter, James Smith, Greg Thwaites, Lalitha Try
Great expectations in hard times?
Previewing the big decisions for the Chancellor in the new Government’s first Budget
·
Emily Fry, Cara Pacitti, James Smith
Over-ruled?
Assessing the options for changing the fiscal rules
·
Cara Pacitti, James Smith
Matthew Whittaker
Matthew Whittaker
Adam Corlett
Adam Corlett Principal Economist
David Finch
David Finch