The Rest Is Money
119. Can Labour’s spending review really mend public services?
Dec 9, 2024
In this insightful discussion, Paul Johnson, Director of the Institute for Fiscal Studies and a public finance expert, delves into Labour's spending review and its potential impact on public services. He evaluates whether Wes Streeting can realistically reform the NHS amid existing funding challenges. Johnson also highlights the shortcomings of data on the UK jobs market, raising concerns about economic policies. The dialogues explore systemic inefficiencies and the urgent need for innovative solutions to improve public service outcomes.
42:50
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Quick takeaways
- The upcoming spending review faces a tight budget cap that risks underfunding vital services outside the health sector.
- Reform of the NHS under Labour may struggle to achieve meaningful improvements due to longstanding inefficiencies and rising demands.
Deep dives
Importance of the Upcoming Spending Review
The upcoming spending review is critical for determining the allocations of government funding from 2026 through the end of the current parliamentary term. This budget will decide the financial resources available for various sectors, particularly health and education, following a previous budget that significantly increased taxes and borrowing. The review will be particularly challenging as it sets a very tight spending cap, potentially leading to cuts in departments outside health. This situation is complicated further by the historical trend of the health service consuming a larger share of public spending, raising concerns about the impact on other vital services.
