Many public services would be stripped back to levels seen in the 2010s era of austerity if Rishi Sunak freezes public service spending, a think tank has warned. The devolved Governments would be left to make their own decisions on spending cuts in areas such as transport health and education, but are likely to face a much-reduced budget.
Ahead of their autumn budget, the Prime Minister and Chancellor Jeremy Hunt are considering up to £50 billion of spending cuts and tax hikes to fill a gaping black hole in the nation’s finances.
While a real-terms freeze in day-to-day public service spending would save around £20 billion a year by 2026-27, the impact would be huge, according to research by the Resolution Foundation, which focuses on living standards.
