Britain faces renewed austerity under Rishi Sunak’s plans to cut spending with reductions in budgets for schools, policing, transport and councils.
The Times has been told that the prime minister and his chancellor, Jeremy Hunt, intend to slow increases in spending after 2025 from the planned 3.7 per cent to as little as 1 per cent.
The plans will form a major part of the government’s attempt to fill a £55 billion black hole in the public finances by 2027-28, saving an estimated £25 billion a year. However, economists said that there would be a significant squeeze on spending because the budgets outside protected areas such as the NHS would rise by less than inflation.
