The Challenge of Public Spending

The current fiscal situation in the UK indicates a looming challenge in public spending, particularly for unprotected government departments. These departments, which include justice, local government, and transport, face significant budget constraints as the government prepares for potential cash freezes. This effectively translates to real-term cuts, exacerbating issues in departments already stretched thin from previous austerity measures. The Chancellor's promise not to return to austerity may come under pressure as difficult spending decisions loom on the horizon.