Spending plans mean £9 billion of cuts after next year, economists warn

Chancellor Rachel Reeves announced rapid spending growth this year and next year, but current plans imply further cuts after 2025, economists have warned (Justin Tallis/PA) - (PA Wire)

The Government will need to raise up to another £9 billion after next year to avoid cutting spending on unprotected departments, economists have warned.

Although day-to-day spending is set to rise rapidly after Wednesday’s Budget, increasing by 4.3% this year and 2.6% next year, it then slows down to just 1.3% per year from 2026.