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The Guardian - UK
The Guardian - UK
Politics
Phillip Inman

Public services need another £44bn by 2025 to cope with inflation, says IFS

The Treasury building, Whitehall, London
The Treasury said in November that it would increase departmental budgets by 3.3%; however, at least 40% of that is projected to be wiped out by inflation. Photograph: Graham Turner/The Guardian

The government will need to spend an extra £44bn over the next three years on public services to keep pace with rising inflation and avoid steep cuts, according to analysis by the Institute for Fiscal Studies.

In a review of the rising costs facing the public sector, the IFS said that without further funding, Whitehall budgets faced being overwhelmed by rising cost pressures that would force departments to cut staff and services.

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