Public services face being stripped back to 2010s austerity levels, warns think tank

🔴 Many public services would be stripped back to levels not seen since the 2010s if Rishi Sunak goes ahead with his proposal to freeze public service spending, a think tank has warned

The Prime Minister and Chancellor Jeremy Hunt are deliberating over whether to make £50 billion spending cuts and tax hikes . Many public services would be stripped back to levels not seen since the 2010s if Rishi Sunak goes ahead with his proposal to freeze public service spending, a think tank has warned.

It would mean the per-person spending of departments such as transport, justice and local government – assuming health, education, overseas aid and defence are protected – would be slashed by around 9 per cent. It would come as their budgets remain below pre-austerity levels and are under significant pressure as inflation soars past 10 per cent.

Prices rising far higher than expected when three-year budgets were set in October 2021 has meant an effective £22 billion real-terms reduction in their public service spending power.spending going from an increase of £1.5 billion in 2024-25 from this year to a cut of £1 billion.

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