The Chancellor's spending freeze will mean schools and hospitals will be forced to make £11bn of cuts, it's been reported. Kwasi Kwarteng has rejected calls to protect their budgets during increasing inflation.
But sticking to the promises made for spending in 2021 doesn't take into account a 10% price rise being seen this year, say experts. Public services have been living under austerity for many years and are widely described as "stretched".
But Mr Kwarteng said this week it was vital to “stick within the envelope of the CSR [the Comprehensive Spending Review]”. The Institute for Fiscal Studies had warned previously that an extra £18bnwould need to be found to meet “the real-terms generosity intended” by the 2021 programme, reports the Independent.
