The Budget and what it means by Sam Dowling

Two months in, the coalition Government is beginning to reveal a little more about its plans for public services and areas that might be affected by the anticipated spending cuts.

The emergency Budget, delivered on 22 June, shows the Chancellor’s determination to draw a line under the previous administration’s spending commitments and start again. His five year plan sets out tough actions in three areas: tackling the unprecedented Budget deficit; introducing a fairer tax system; and encouraging enterprise and supporting long-term growth across the economy. The Budget and associated papers can be seen here.

Budget measures announced included plans to cut departmental spending by 20% across the board to achieve savings of £17 billion from central Government spending. Whilst health and international development departmental expenditure was said to be safe, all departments and all parts of the public sector are expected to share the pain of the anticipated cuts. This means that spending programmes in the areas of education, local government and home affairs are all likely to be affected.

The current review of existing expenditure and commitments will inform the Comprehensive Spending Review (CSR) Statement, scheduled for Wednesday 20 October: a key date for anyone delivering public services, or working within or in partnership with the public sector. Further information on the CSR can be seen here.

Also flagged in the Budget was the cessation of the Future Jobs Fund and the creation of a single work programme. The recent DWP announcement means that there will be new opportunities for charities, community groups and social enterprises to work together – following the example of groundbreaking consortia 3SC.

We will be following developments closely.

Sam Dowling, Policy Manager at The Social Investment Business