UK Chancellor Rachel Reeves is expected to present the results of a five-month audit of the public finances and launch a review of UK government spending since the country’s last general election. The review will take into account expenses that are not officially included in spending that was approved by parliament. It is expected that the review could conclude that some projects are not affordable, leading to the cancellation of some plans.
However, the validity of the review is already being questioned. Institute for Fiscal Studies (IFS) Director Paul Johnson has described the review as “not very credible” in part due to the fact that many documents concerning public finances are public and can be read by anyone. Reeves is expected to place the blame for any such cancellation on the previous Conservative government.
The department said the review will focus on current in-year departmental allocations to assess whether these are sufficient to meet pressures in 2022-23. The review has been led by three groups, including an independent advisory group and the Accounts Commission of the Treasury. The Chancellor also said a separate comprehensive government spending review will be scheduled for next year.
Next month’s budget, scheduled to take place on 27th October, will detail the government’s plans over the next five years. The government has said it plans to “fix the foundations” of the economy and aims to start “rebuilding Britain” as well as focusing on ensuring people feel better off. However, it is widely anticipated that there could be tax increases to address the UK’s debt.
The pandemic has added to the UK’s public debt, which stood at £2.2tn ($3tn) in June, equivalent to 98.8% of GDP, though debt levels have been raised by government spending intiatives meant to support businesses and consumers through the economic effects of the pandemic.
The Labour government has warned that repairing public services and rebuilding the economy will require increased government spending over the long term. However, some Conservative leaders have suggested this is not viable, expressing concern over the levels of public debt
Read the full article from The BBC here: Read More
