An article examined how perceptions of government quality – in terms of impartiality and efficiency – affected attitudes to taxes and social spending in Europe. The quality of government was found to have a clear, independent effect on attitudes to taxes and spending, so that people who perceived institutions as efficient and fair wanted higher taxes and spending. But government quality also conditioned the impact of egalitarianism on attitudes to taxes and spending: where government quality was perceived as high, egalitarianism had a clearly stronger impact on these attitudes.
Source: Stefan Svallfors, 'Government quality, egalitarianism, and attitudes to taxes and social spending: a European comparison', European Political Science Review, Volume 5 Issue 3
Links: Abstract
Date: 2013-Dec
A paper examined resource allocation formulae used in the National Health Service in England.
Source: Mervyn Stone, Explicating Wrong or Questionable Signs in England's NHS Funding Formulas: Correcting wrong explanations, Civitas
Links: Paper
Date: 2013-Dec
A report by a joint committee of MPs and peers said that the government should reconsider its proposals for the reform of legal aid, with more and broader exemptions from some proposals, to protect against breaches of the fundamental right of effective access to justice in individual cases. Recommendations included: that any residence test for eligibility be introduced through primary legislation to allow for full parliamentary scrutiny; that all children should be exempt from any residence test; for urgent reforms to be made to the internal prison complaints system; and that legal assistance should remain for young offenders, particularly for cases regarding resettlement. It also raised concerns about the impact of the proposals on people with mental capacity or mental health difficulties, and about the proposal to remove cases with borderline prospects of success from legal aid funding.
Source: The Implications for Access to Justice of the Government's Proposals to Reform Legal Aid, Seventh Report (Session 2013–14), HC 766 and HL 100, Joint Select Committee on Human Rights, TSO
Links: Report | Coram Children's Legal Centre press release | Guardian report
Date: 2013-Dec
An article examined the impacts of the global economic crisis on European health systems. The recession had led to more frequent poor health status, rising incidence of some communicable diseases, and higher suicide rates. Available data were likely to underestimate the broader mental health crisis linked to increased rates of stress, anxiety, and depression among those who were economically vulnerable. Many European governments had reduced public expenditure on health services and introduced or increased user charges. Nonetheless the recession presented an opportunity for reforming and restructuring health promotion actions and taking a long-term perspective.
Source: David McDaid, Gianluca Quaglio, Antonio Correia de Campos, Claudio Dario, Lieve Van Woensel, Theodoros Karapiperis, and Aaron Reeves, 'Health protection in times of economic crisis: challenges and opportunities for Europe', Journal of Public Health Policy, Volume 34
Links: Abstract
Date: 2013-Dec
A report evaluated the first six months of the employment and reoffending pilot, which was part of a planned programme of pilots to test the application of payment by results approaches in the area of criminal justice. The report outlined findings from the first phase of the evaluation and noted core themes that might be explored further in later waves of the evaluation.
Source: Rowan Foster, Lauren Small, Sarah Foster, Oonagh Skrine, Gillian Hunter, and Paul Turnbull, Evaluation of the Employment and Reoffending Pilot: Lessons learnt from the planning and early implementation phase, Ministry of Justice
Links: Report
Date: 2013-Dec
The government published the draft Wales Bill, for pre-legislative scrutiny. The Bill would: enable the Welsh Assembly to legislate on devolved taxation and provide for a referendum in Wales on whether an element of income tax should be devolved; allow the Assembly to set a Welsh rate of income tax; extend, and create new, borrowing powers; extend Assembly terms to five years; and amend rules governing candidates in Assembly elections and Welsh Assembly members.
Source: Draft Wales Bill, Cm 8773, Wales Office, TSO
Links: Draft Bill | Wales Office press release | Welsh Government press release
Date: 2013-Dec
The coalition government published the 2013 Autumn Statement on the economy and public finances. Growth forecasts for the United Kingdom had been revised upwards by the Office for Budget Responsibility, but the government said that spending needed to continue to be restrained. The statement contained a series of measures that were to be fiscally neutral overall. The measures included:
• A cap on overall welfare spending, to exclude the state pension and most cyclical benefits for jobseekers.
• A reduction in departmental budgets for 2014-15 (except for the National Health Service, schools, security and intelligence agencies, HMRC, and local authorities).
• An increase in the state pension; pensioners and some older workers to be permitted to make additional voluntary national insurance contributions; and an increase in state pension age to 68 in mid 2030s, and then to 69 in late 2040s.
• Loans to unblock large housing developments; regeneration of urban housing estates; councils to sell off valuable council housing; working people in social housing to gain priority right to move for work; and Right to Buy to be expanded.
• Free school meals for children in reception and Years 1 and 2.
• Additional support for 16-17 year olds who had few qualifications to find apprenticeships or traineeships; 18-21 year olds without maths and English skills to be required to train in those subjects (or lose benefits), and to be mandated to take on traineeship, work experience or community service after six months.
• Apprenticeship funding to be administered through HMRC; an additional 20,000 higher apprenticeships to be provided over the next two years; and legislation to remove employer national insurance contributions on employees under the age of 21.
• 30,000 additional higher education places in 2014, with the cap removed in 2015; and additional funding for science, technology and engineering courses – to be financed from the sale of the student loan book.
• Married couples to share tax allowance, up to £1000.
• Infrastructure spending, set out in the previously published National Infrastructure Plan.
• Reduction in energy levies, to be reflected in consumer bills; changes in the pricing structure for wind energy; and tax reliefs for shale gas exploration.
Source: Autumn Statement 2013, Cm 8747, HM Treasury, TSO
Links: Report | Distributional analysis | Policy costings | Data sources | DWP note on pensions | DCLG press release | HMT press release | Northern Ireland Office press release | Scotland Office press release | Scottish government press release | Wales Office press release | Hansard | 4Children press release | Action for Children press release | Age UK press release | ACEVO press release | Barnardo's press release | BBA press release | BCC press release | BMA press release | CBI press release | Children's Society press release | CIH press release | CIPD press release | Citizens Advice press release | Gingerbread press release | Green Party press release | HEFCE press release | IEA press release | IFS briefing documents | JRF press release | LGA press release | London Councils press release | NCB press release | NFA press release | Oxfam press release | Resolution Foundation press release | Russell Group press release | SMF press release | SNP press release | UUK press release | WLGA briefing | BBC report I | BBC report II | BBC report III | BBC report IV | BBC report V | FE News report | Guardian report I | Guardian report II | Guardian report III | Guardian report IV | Guardian report V | Inside Housing report I | Inside Housing report II | Inside Housing report III | Inside Housing report IV | Inside Housing report V | Telegraph report I | Telegraph report II | Telegraph report III | Telegraph report IV
Date: 2013-Dec
The Office for Budget Responsibility's economic and fiscal outlook was published. The document informed the Autumn Statement.
Source: Office for Budget Responsibility: Economic and fiscal outlook, Cm 8748, HM Treasury, TSO
Links: Report
Date: 2013-Dec
An article examined how austerity policies had affected health in Europe, and the response of European health systems to the financial crisis. Many governments had cut public expenditure on health sharply during the financial crisis. The consequences for health outcomes had begun to emerge, with an increase in poor health status, and rising rates of anxiety and depression among economically vulnerable groups. The incidence of some communicable diseases, along with the rate of suicide, had increased significantly. The recession had also driven structural reforms.
Source: GianLuca Quaglio, Theodoros Karapiperis, Lieve Van Woensel, Elleke Arnold, and David McDaid, 'Austerity and health in Europe', Health Policy, Volume 113 Issue 1-2
Links: Abstract
Date: 2013-Dec
A report by a committee of MPs re-examined the case for the High Speed 2 rail project in the light of the publication of a revised business case and new research on the project's regional economic benefits.
Source: High Speed Rail: On track?, Ninth Report (Session 2013–14), HC 851, House of Commons Transport Select Committee, TSO
Links: Report | BBC report
Date: 2013-Dec
A report by a committee of MPs said that the committee welcomed continued improvements to the Whole of Government Accounts and their increased use in risk management, but was disappointed that the accounts had again been qualified. The report raised continuing concerns about the level of fraud, error and bad debts, and said that the time lag between the end of the financial year and publication of the accounts needed to be reduced.
Source: Whole of Government Accounts 2011 12, Thirty-second Report (Session 2013–14), HC 667, House of Commons Public Accounts Select Committee, TSO
Links: Report
Date: 2013-Dec
An article examined the adoption and success of payment schemes that promoted integration of chronic care in selected European countries. All payment reforms appeared to have changed the structure of chronic care delivery. 'Pay for co-ordination' – in Austria, France, and Germany – was perceived to be the most successful in increasing collaboration within and across healthcare sectors. 'Pay for performance' – in England and France – was perceived to be most successful in improving other indicators of the quality of the care process. The impact of the payment reforms on healthcare expenditures remained questionable. The success of a payment scheme depended on the details of the specific implementation in a particular country: but a combination of the schemes might overcome the barriers of each individual scheme.
Source: Apostolos Tsiachristas, Carolien Dikkers, Melinde Boland, and Maureen Rutten-van Molken, 'Exploring payment schemes used to promote integrated chronic care in Europe', Health Policy, Volume 113 Issue 3
Links: Abstract
Date: 2013-Dec
An article examined the consequences of population ageing for health expenditure growth in western countries. Ageing was most likely to influence growth in spending indirectly, through its influence on societal factors. It moderately increased spending on acute care, and strongly increased spending on long-term care. It reinforced the influence of medical technology on health expenditure growth, and vice versa.
Source: Claudine de Meijer, Bram Wouterse, Johan Polder, and Marc Koopmanschap, 'The effect of population aging on health expenditure growth: a critical review', European Journal of Ageing, Volume 10 Number 4
Links: Abstract
Date: 2013-Dec
A report provided the findings of a review of financial management in government, which made recommendations that the government would plan to implement in full.
Source: Review of Financial Management in Government, HM Treasury
Links: Report | HMT press release
Date: 2013-Dec
A report for a trade union examined the impact of central government funding cuts ('austerity cuts') on lesbian, gay, bisexual and transgender people and the services that they used. The report said that it was sometimes difficult to attribute issues directly to austerity measures and to isolate the effects of austerity cuts from ever-present phobias and discriminations. The report said that LGBT people had experienced: financial hardships (redundancies, real term pay cuts, changes to benefit rules); difficulty in finding safe, LGBT-friendly accommodation; reductions in sexual health and mental health services that met their specific needs; and cuts in support services. It noted a need for public funding to secure services that might not be funded elsewhere, and made recommendations for trade union support.
Source: Martin Mitchell, Kelsey Beninger, Nilufer Rahim, and Sue Arthur, Implications of Austerity for LGBT People and Services, National Centre for Social Research
Links: Report | Summary | UNISON press release
Date: 2013-Dec
The European Parliament voted to accept the Multiannual Financial Framework and associated Inter-institutional Agreement, both key elements of the European Union budget for 2014-2020. The funding for individual programmes was yet to be finalized.
Source: Multiannual Financial Framework 2014-2020, European Parliament
Links: Multiannual Framework | Interinstitutional agreement | European Parliament press release | European Commission memo | BBC report
Date: 2013-Nov
An audit report examined savings from operational private finance initiative contracts. The private finance initiative (PFI) financed public sector infrastructure and capital equipment projects. Under a PFI contract, a public sector authority pays a private contractor an annual fee, the 'unitary charge', for the provision and maintenance of a building or other asset. The report said that, as at June 2013, government departments had reported £1.6 billion of formally agreed savings to the Treasury. The report examined the reliability of these reported savings.
Source: Savings from Operational PFI Contracts, National Audit Office
Date: 2013-Nov
A report outlined proposals for a post-independence tax system for Scotland.
Source: Principles for a Modern and Efficient Tax System in an Independent Scotland, Fiscal Commission Working Group, Scottish Government
Links: Report | Summary | Scottish Government press release | BBC report
Date: 2013-Nov
An audit report said that the government and regulators did not know by how much new investment by the private sector in energy, water and telecoms infrastructure would increase household utility bills. It said that expected investment was likely to have an impact, and this was likely to hit those households with incomes in the lowest 10 per cent particularly hard. The report recommended that the Treasury should develop mechanisms to assess the impact of investment on consumer bills, and that figures for expected impact should be published. It also recommended that government departments should consider the implications for consumer bills and their overall affordability before making infrastructure commitments.
Source: Infrastructure Investment: The impact on consumer bills, HC 812-I (Session 2013–14), National Audit Office, TSO
Links: Volume I | Volume II | Summary | Appendix 6 | NAO press release
Date: 2013-Nov
A memorandum examined the Ministry of Justice's electronic monitoring contracts, and its decision to commission a forensic audit of the contracts. The report set out the main findings of the audit.
Source: The Ministry of Justice s Electronic Monitoring Contracts, HC 737 (Session 2013–14), National Audit Office, TSO
Links: Memorandum | Summary | NAO press release
Date: 2013-Nov
The High Speed Rail (Preparation) Act 2013 was given Royal assent. The Act provided for expenditure in preparation for a high speed railway transport network.
Source: High Speed Rail (Preparation) Act 2013, Department for Transport, TSO
Links: Act | Explanatory notes
Date: 2013-Nov
A government report provided the annual statement to Parliament detailing the year's European Union budget, and the United Kingdom's gross and net contributions. It included information on developments in financial management in the European Union.
Source: European Union Finances 2013: Statement on the 2013 EU budget and measures to counter fraud and financial mismanagement, Cm 8740, HM Treasury, TSO
Links: Report | HMT press release
Date: 2013-Nov
An article examined different stakeholder perspectives of 'privatization' in the English National Health Service. It examined the political, public, clinical provider, and campaigning groups' perspectives of privatization using a 'three-dimensional' approach (ownership, finance, and regulation). It said that privatization was multi-dimensional, stakeholders had differing interests, and a lack of distinction around use and meaning of the term had led to differing accounts of privatization.
Source: Martin Powell and Robin Miller, 'Privatizing the English National Health Service: an irregular verb?', Journal of Health Politics, Policy and Law, Volume 38 Number 5
Links: Abstract
Date: 2013-Nov
A think-tank report examined the funding of health and social care and the role of user charging in healthcare. It said that the National Health Service faced an estimated funding gap of £30 billion by 2020. It suggested a range of possible charges to help meet the gap, including reforms to prescription charges, with options such as: an increased prescription charge of £10; the reduction or removal of charging exemptions for elderly people; and a system whereby only 20 per cent of drugs were dispensed free of charge, but alongside a reduced prescription charge. Other suggested charges included: a £10 flat rate charge for family doctor consultations; a £10 daily 'hotel' charge for overnight hospital stays; and a £10 fine for missed outpatient hospital appointments.
Source: Thomas Cawston and Cathy Corrie, The Cost of Our Health: The role of charging in healthcare, Reform
Links: Report | Reform press release | RPS press release | BBC report
Date: 2013-Nov
A report outlined proposals for post-independence fiscal rules for Scotland.
Source: Fiscal Rules and Fiscal Commissions, Fiscal Commission Working Group, Scottish Government
Links: Report | Summary | Scottish Government press release | BBC report
Date: 2013-Nov
The United Kingdom government announced that additional financial powers would be devolved to Wales. The announcement was made in response to the Commission on Devolution in Wales (the Silk Commission). A formal response to the Commission would be issued later in 2013.
Source: Powers for Wales in biggest devolution in decades, Wales Office press release | Ministerial statement | Finance Minister for Wales press release | CBI press release | LGA press release
Date: 2013-Nov
A report by a committee of the National Assembly for Wales said that the draft budget for the next financial year was not well aligned with the government's programme. It welcomed improvements in the clarity of the report, but the committee wanted to see government priorities more clearly reflected and highlighted in budget proposals. The report said AMs were concerned about the lack of detail regarding the financial implications of existing and forthcoming legislation. The committee recommended holding an inquiry to examine the issue in depth. In all, 22 recommendations were made.
Source: Scrutiny of Welsh Government Draft Budget 2014-15, Finance Committee, National Assembly for Wales
Links: Report | National Assembly press release
Date: 2013-Nov
The National Audit Office issued a memorandum to government that outlined key issues related to government contracting. It raised questions about the way public service markets operated, whether public service contracts were sufficiently competitive, issues related to the profitability of contracts, and the monitoring of contractor performance. A second memorandum was published at the same time, which discussed more specifically the management of suppliers.
Source: The Role of Major Contractors in the Delivery of Public Services, HC 810 (Session 2013–14), National Audit Office, TSO
Links: Memorandum | Summary | Memorandum II | Summary II | NAO press release | CBI press release | PCS press release
Date: 2013-Nov
A think-tank report examined the United Kingdom economy and made recommendations for a set of new fiscal rules.
Source: Ed Holmes, Money for Nothing: Rules to secure the UK s fiscal solvency, Policy Exchange
Links: Report | Policy Exchange press release
Date: 2013-Nov
A think-tank report examined the potential long-run fiscal pressures for an independent Scotland, how these would differ from those facing the United Kingdom, and the size of the fiscal consolidation that might be required to ensure sustainability. It said that there was uncertainty surrounding future borrowing and debt in Scotland, but the analysis suggested that a significant further fiscal tightening would be required beyond that already announced by the United Kingdom government. The report said that these fiscal pressures should be considered alongside any discussions about post-independence restructuring of Scottish taxation and public spending.
Source: Michael Amior, Rowena Crawford, and Gemma Tetlow, Fiscal Sustainability of an Independent Scotland, Institute for Fiscal Studies
Links: Report | IFS press release | Scottish government press release | Guardian report | BBC report
Date: 2013-Nov
The government responded to the results of a consultation on public sector equity participation in PF2 public private partnership projects.
Source: Government Response to: A New Approach to Public Private Partnerships Consultation on the Terms of Public Sector Equity Participation in PF2 Projects, HM Treasury
Links: Response | HMT press release
Date: 2013-Oct
An article examined social impact bonds. It raised concerns about their potential outcomes, about possible unintended consequences for the third sector, and regarding their governance.
Source: Neil McHugh, Stephen Sinclair, Michael Roy, Leslie Huckfield, and Cam Donaldson, 'Social impact bonds: a wolf in sheep's clothing?', Journal of Poverty and Social Justice, Volume 21 Number 3
Links: Abstract
Date: 2013-Oct
A report by a committee of MPs examined the Spending Round 2013.
Source: Spending Round 2013, Third Report (Session 2013-14), HC 575, House of Commons Treasury Select Committee, TSO
Links: Report | Press release
Date: 2013-Oct
A report examined public spending from 2016 onwards and concluded that the next government could afford to spend more, but needed to spend in line with long-term objectives. The report examined spending pressures over the following 20 years and concluded that spending and tax revenues would need to rise to avoid harm to the economy or key public services while gradually reducing the national debt. The report also made recommendations about how to improve the process, planning, and effectiveness of public spending.
Source: 2030 Vision: The final report of the Fabian Commission on Future Spending Choices, Fabian Society
Links: Report | Summary | Fabian Society press release | Guardian report | BBC report
Date: 2013-Oct
The Scottish Government published its Draft Budget for 2014-15 and its indicative spending plans for 2015-16. It said that it would provide at least £68 million in each of the two years to mitigate the impact of United Kingdom benefits cuts, and a further £20 million in 2013-14 to limit the impact of the 'bedroom tax'.
Source: Scottish Budget: Draft Budget 2014-15, Scottish Government
Links: Report | Scottish Government press release | SFHA press release | Inside Housing report
Date: 2013-Sep
A report said that the United Kingdom government's deficit reduction plan meant that the Welsh Government faced at least four more years of budget cuts on top of those already delivered over the three years since 2010-11. Although overall spending might be able to rise from 2017-18, significant challenges would remain. In particular, pressures for increased spending in areas such as health, social services, and schools over the period to 2025-26 could see continuing spending cuts in other areas, such as transport, culture, and housing.
Source: Benjamin Deaner and David Phillips, Scenarios for the Welsh Government Budget to 2025-26, Report R83, Institute for Fiscal Studies
Links: Report | IFS press release | WLGA press release
Date: 2013-Sep
A briefing described the patterns of public services expenditure in Scotland and set out a number of issues for the future. It compared the amount spent with that in the rest of the United Kingdom; examined how the amount spent on different service areas compared with the average for the UK as a whole, and some causes and consequences of these differences; looked at how spending on different public services had changed over time; and discussed the options and issues in public services spending if Scotland were to vote for independence. If the Scottish Government had to deliver a fiscal tightening equivalent to that planned by the UK government, spending cuts or tax rises of about £2.5 billion would be required during the two years from 2016.
Source: Ben Deaner and David Phillips, Government Spending on Public Services in Scotland: Current patterns and future issues, Briefing Note 140, Institute for Fiscal Studies
Links: Briefing Note | IFS press release | BBC report | Guardian report | Telegraph report
Date: 2013-Sep
A report examined public spending options for a government coming to power in 2015. It considered how new principles, processes, and structures could improve spending decisions. It called for debate on wide-ranging institutional reform to achieve wiser spending choices.
Source: Commission on Future Spending Choices, Spending Wisely: Principles for a good spending review, Fabian Society
Date: 2013-Jul
The coalition government announced details of its plans (previously announced in the 2013 Budget) for future infrastructure spending. It described them as 'the most comprehensive, ambitious and long-lasting capital investment plans this country has ever known... the biggest public housing programme for more than 20 years, the largest programme of rail investment since Victorian times, the greatest investment in our roads since the 1970s, fast online access for the whole country and the unlocking of massive investments in cleaner energy to power our economy forwards'. £50 billion would be spent in 2014-15, £10 billion less than had been planned by the previous Labour administration.
Source: Investing in Britain's Future, Cm 8669, HM Treasury, TSO
Links: Report | Hansard | DCLG press release | ATL press release | CBI press release | CfBT press release | CIH press release | Full Fact blog post | HCA press release | ICE press release | IPPR blog post | Labour Party press release (1) | Labour Party press release (2) | LGA press release | NHF press release | Passenger Focus press release | TCPA press release | TUC press release | Work Foundation press release | Guardian report (1) | Guardian report (2) | Inside Housing report | New Statesman report | Public Finance report
Date: 2013-Jun
The coalition government announced its public spending plans for 2015-16, involving cuts of £11.5 billion:
• A new cap on benefits spending (with some exceptions such as state pensions) was confirmed, to be set in cash terms every 4 years from April 2015. Most newly unemployed people would have to wait 7 days, instead of 3, before being able to claim benefits; and those who refused an order to attend English language classes would face having their benefits cut.
• Spending on local government services would be cut by 10 per cent; but council tax bills would be frozen in both 2014-15 and 2015-16.
• There would be a cut of 7 per cent in spending on culture and sports; 10 per cent in the Ministry of Justice; 6 per cent in the Home Office; 9 per cent on transport; and 10 per cent on the environment and rural affairs.
• Budgeted spending on education and the National Health Service would be broadly maintained. But £2 billion would be transferred from health to social care. There would be a new national funding formula for schools in England.
The government published a distributional analysis of all fiscal measures since it came to office, indicating that on average each household had incurred a cumulative loss equivalent to £880 per year from the measures (at 2010-11 prices): the two quintiles that had lost more than the average were those on the highest incomes (losing £2,160 per year, or 4 per cent of income) and those on the lowest incomes (£930 per year, or 3.9 per cent).
Source: Spending Round 2013, Cm 8639, HM Treasury, TSO
Links: Report | Distributional analysis | Policy costings | Equality impact | Hansard | HMT press release | DCLG press release | DCMS press release | DH press release | Home Office press release | Action for Children press release | ADASS press release | Barnardos press release | Childrens Society press release | Citizens Advice press release | CPAG press release | Disability Rights UK press release | EDCM press release | Fawcett Society press release | FTN press release | Gingerbread press release | Homeless Link press release | ILC press release | JRF blog post | Kings Fund press release | LGA press release | NCB press release | NHF press release | NPC press release | Oxfam press release | Resolution Foundation press release | Scope press release (1) | Scope press release (2) | SIGOMA press release | SMF press release | TUC press release | WBG press release | BBC report (1) | BBC report (2) | BBC report (3) | Community Care report | Guardian report (1) | Guardian report (2) | Guardian report (3) | Guardian report (4) | New Statesman report | Public Finance report | Telegraph report
Date: 2013-Jun
A think-tank report put forward an alternative plan for the future of public spending. It proposed: A £55 billion fiscal stimulus in green and social infrastructure spending; tough fiscal rules with democratic fiscal oversight; the elimination of the structural deficit (once economic recovery was assured) through a series of progressive tax rises and cuts in wasteful public spending; and a restructuring of public services to ensure sustained efficiency, responsiveness, and innovation.
Source: Joe Cox, Invest to Grow: A spending review to get Britain moving, Compass
Links: Report | Compass press release
Date: 2013-Jun
The coalition government said that central government departments had made efficiency savings in 2012-13 of £10 billion – an increase of 82 per cent from the previous year, and 25 per cent more than the target.
Source: Press release 3 June 2013, Cabinet Office
Links: Cabinet Office press release | Summary report | CBI press release | Institute for Government press release | BBC report | Guardian report | Telegraph report
Date: 2013-Jun
A think-tank report called for cuts in spending on the NHS and pensions on the grounds that they were 'unsustainable'.
Source: Cathy Corrie and Patrick Nolan, Seismic Shifts in the Welfare State: Demographic trends and pension and NHS reform, Reform
Links: Report | Telegraph report
Date: 2013-May
A study examined decision-making by 5 Scottish local authorities in relation to budget cuts due to austerity measures, and how they protected the most vulnerable and disadvantaged groups. It said that local councils needed to develop more innovative priority-setting in order to help protect such groups.
Source: Darinka Asenova, Stephen Bailey, and Claire McCann, Managing the Social Risks of Public Spending Cuts in Scotland, Joseph Rowntree Foundation
Date: 2013-Apr
A think-tank paper examined the coalition government's announcement (in the 2013 Budget) of its intention to set a limit on a significant proportion of Annually Managed Expenditure (AME) – demand-led spending that comprised half of all government expenditure, principally social security benefits. Given the 'politically untouchable' nature of pensioner benefits, the obvious implication of an AME cap was that working-age benefits would be cut further: but this would be incompatible with the government's other objective of allowing 'automatic stabilizers' to operate (allowing benefits to rise during recessions). The only real virtue of an AME cap therefore seemed to be a rhetorical one. A cap would obfuscate rather than clarify public policy choices about the shape of the welfare state and of public spending programmes.
Source: Ian Mulheirn, Making the Cap Fit: The implications of an AME spending limit, Social Market Foundation
Links: Briefing
Date: 2013-Apr
An audit report said that the Cabinet Office's Efficiency and Reform Group had helped to cut public spending by £5.5 billion in 2011-12. But there had not been enough focus on the sustainability of savings, and it was not fully clear how it could secure the planned £20 billion of cuts over the rest of the Spending Review period.
Source: The Efficiency and Reform Group, HC 956 (Session 2012-13), National Audit Office, TSO
Links: Report | NAO press release | PAC press release | BBC report | Public Finance report | Telegraph report
Date: 2013-Apr
A report by a committee of MPs said that the government should increase the use of 'whole of government accounts' in order to improve value for money. The accounts, combining statements from 1,500 public sector bodies to give a picture of the government s total finances, were not yet a meaningful tool for managing the public finances.
Source: HM Treasury: Whole of Government Accounts 2010-11, Thirty-seventh Report (Session 2012-13), HC 867, House of Commons Public Accounts Select Committee, TSO
Links: Report | CIPFA press release | Public Finance report
Date: 2013-Apr
The coalition government presented its 2013 Budget statement. Forecast economic growth for 2013 was halved, to 0.6 per cent. After excluding special factors, public sector borrowing was expected to fall marginally in 2013-14: but forecasts of public debt were revised sharply upwards, with a peak of 85.6 per cent of national income reached in 2016-17, a year later than previously expected.
The main Budget measures included:
• Departmental spending would be cut by a further £1.1 billion in 2013-14 and £1.2 billion in 2014-15 – equivalent to a 1 per cent cut for most departments. Schools and health budgets would remain protected, and local government and police allocations that had been set for 2013-14 would not be altered.
• Public sector pay increases would be capped at 1 per cent for a further year in 2015-16.
• The annual personal income tax allowance would rise to £10,000 from 2014-15, a year earlier than previously proposed. This was a real-terms increase of £240 on the 2013-14 level of £9,440, costing £1.1 billion.
• The main rate of corporation tax would be cut by a further 1 percentage point in April 2015, to 20 per cent, at a cost of £865 million per year by 2017-18. Banks would be prevented from benefiting from the cut by an increase in levies.
• All businesses and charities would be entitled to a £2,000 reduction in employer's national insurance contributions from April 2014, costing £1.7 billion per year by 2017-18.
• A new 'Help to Buy' scheme would offer financial help to home-buyers. Equity loans worth up to 20 per cent of the value of a new-build home would be available to anyone for three years from April 2013. The government would also guarantee up to 15 per cent of mortgages on all properties (both old and new) for three years from January 2014, under an extension of the previous 'NewBuy' guarantee scheme..
The Budget also confirmed plans, announced in advance, for a new system of childcare vouchers, and to bring forward by a year both the introduction of a new flat-rate state pension and a cap on lifetime social care costs.
Source: Budget 2013, HC 1033, HM Treasury, TSO | Impact on Households: Distributional analysis to accompany Budget 2013, HM Treasury
Links: Report | Household impact statement | OBR report | Hansard | HOC research brief | Barnardos press release | BSA press release | CBI press release | Childrens Commissioner press release | Childrens Society press release | CIH press release | Citizens Advice press release | CML press release | CPAG press release | ECP press release | Family Action press release | Fawcett Society press release | Gingerbread press release | HBF press release | LGA press release | LITRG press release | JRF press release | NHF press release | Resolution Foundation press release | Shelter press release | TUC press release | WBG press release | BBC report (1) | BBC report (2) | Community Care report | Daily Mail report | Guardian report (1) | Guardian report (2) | Inside Housing report | Public Finance report
Date: 2013-Mar
A report by a committee of MPs said that the coalition government did not fully understand the impact of the spending cuts it was making. It was focusing on short-term priorities rather than the longer-term view. Departments often lacked information on costs, or accurate benchmarks: this meant that the Treasury struggled to assess the cost-effectiveness of proposed spending and make meaningful comparisons. There was no evidence of clear thinking on how a decision to save money in one budget area might lead to an increase in expenditure elsewhere.
Source: Managing Budgeting in Government, Thirty-fourth Report (Session 2012–13), HC 661, House of Commons Public Accounts Select Committee, TSO
Links: Report | Committee press release | IOG press release | BBC report | Guardian report | Public Finance report
Date: 2013-Mar
An audit report said that central government could reduce inefficiencies in public services and deliver a better service to citizens by operating in a more integrated way. A case study of the four whole-place community budget areas showed that these areas had taken a positive first step in assessing the case for integration.
Source: Integration across Government, HC 1041 (Session 2012–13), National Audit Office, TSO
Links: Report | Case study | NAO press release | PAC press release | Public Finance report
Date: 2013-Mar
A think-tank report examined the coalition government's policy of ring-fencing areas of public spending from cuts. It said that the policy had created a perception of underfunding while leaving the real drivers of spending unaddressed. Cuts had fallen on departments on political grounds, rather than to improve value for money. Ring-fencing areas had failed to benefit from the pressure to change and innovate. By failing to address the major drivers of spending, the coalition's approach had also threatened longer-term prospects for economic growth.
Source: Cathy Corrie, Patrick Nolan, and James Zuccollo, Not Just a Crash Diet: Improving public finances through structural reform, Reform
Date: 2013-Mar
The report was published of an expert workshop that examined ways of using human rights and equality legislation to analyze and challenge public spending cuts.
Source: Using Human Rights and Equality to Analyse and Challenge the Public Spending Cuts: Reflections on past practice and organising for the future, Centre for Human Rights in Practice (University of Warwick)
Links: Report
Date: 2013-Jan