“Plugging funding gaps in critical public services will cost £10 billion over the next five years without fixing deep-seated problems.
The Institute for Government (IfG) and the Chartered Institute of Public Finance and Accountancy have concluded in a report that spending on frontline services has become trapped in a “reactive cycle” of allowing problems to mount until there is a crisis and an injection of emergency cash is the only solution, denying money for “transformative” projects.
Emily Andrews, of the IfG, the report’s author, said: “If the chancellor and government cannot break out of this cycle they must accept that budgets will rise or services will deteriorate.”
Emergency cash had already been pumped into schools and social care, the report notes.
The report says that even if should good decisions be taken by Philip Hammond in his November 22 budget, they “will not solve the underlying problems which have allowed this government to get into this reactive spending cycle”.
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