Newscast Spending Review: Tussles In The Treasury
8 snips
Jun 8, 2025 
Simon Jack, the BBC's Business editor, teams up with Paul Johnson, the Director of the Institute for Fiscal Studies, to dissect the tensions within the Treasury as the government approaches its Spending Review. They delve into how budget constraints are impacting economic growth and public services, and the urgent need for transparency in government spending. The pair also reflects on the slow recovery from the 2010s recession and its political implications, showcasing the intricate dance between fiscal policy and governance.
AI Snips
Chapters
Transcript
Episode notes
Tight Day-to-Day Budget Challenges
- Rachel Reeves faces a spending review nightmare due to very tight day-to-day government budget increases of just over 1% annually.
- Major areas like health and defense require large funding, forcing cuts elsewhere amidst constrained resources.
Growth-Promoting Investment Limits
- Long-term capital spending aims to boost growth but business investment remains stubbornly low amid uncertainties like tariff wars.
- This lack of private sector investment hinders economic growth despite government efforts to stimulate it.
Business Confidence Hit by Taxes
- The government’s 40 billion pounds in business tax rises and rising public sector wages have damaged business confidence.
- Businesses now demand growth levers and no more taxes to avoid additional financial strain.