Hopes for increased FE and skills spending have been dashed, as analysts warn of cuts to unprotected budgets following this week’s autumn statement.
Chancellor Jeremy Hunt’s decision to prioritise spending on tax cuts – rather than increasing government department budgets – could lead to real terms cuts of around 3.4 per cent in the coming years.
That estimate, from the Institute for Fiscal Studies (IFS), would affect non-protected government spending, such as further education and skills budgets within the Department for Education. Historically, spending on schools, the armed forces, and the NHS have been protected from cuts.
Bee Boileau, a research economist at the IFS, said that while high inflation has increased tax revenues, it also means fixed departmental budgets are worth less in real terms.
