Institute for Government proposes new spending limits for preventative public services
What happened
The Institute for Government has called for the implementation of a new national spending system. This system would ringfence spending deemed "preventative," meaning initial costs are offset by future savings. The proposed mechanism, called a preventative departmental expenditure limit (PDEL), aims to protect long-term projects from being cut to cover immediate needs.
From theguardian.com
Why it matters
The proposal suggests a major change in how the government manages spending reviews and the overall spending framework. Officials in the Treasury have stated that the reform is important.
From theguardian.com
Who's involved
- Institute for GovernmentAdvocated for the new national spending system.
- John HealeyMentioned in the budget document regarding the proposal.
- Rachel ReevesFiscal oversight and budget strategy are affected by the proposed reform.
- Keir StarmerPolitical policy execution could be constrained by new spending rules.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EnglandSpeculative
Preventative public services might see protected funding through the PDEL.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- New spending framework may change OBR's fiscal assumptionsThe Office for Budget Responsibility may need to adjust its fiscal assumptions due to new spending rulesLikely
- New national spending system may require House of Commons approvalThe new national spending system may require House of Commons approvalPossible
- New spending system may change how Rachel Reeves manages budgetsThe new preventative spending system could fundamentally change how Rachel Reeves manages the government's fiscal framework.Possible
- New spending rules may constrain Keir Starmer's government policyThe new preventative spending rules could constrain the government's ability to execute policy.Possible
- Cabinet Office may overhaul systems to manage new spending limitsThe Cabinet Office may face a major administrative overhaul implementing new spending rulesPossible
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The entities involved
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Andy Burnham
British politician (born 1970)
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Institute for Government
think tank in the UK
Related events
- Andy Burnham and John Healey are co-leading the government budget preparation.
- CBI criticizes John Healey's Budget for lacking investment boost, while Andy Burnham defends the government's fiscal strategy.
- The Office for Budget Responsibility is evaluating the economic impact of government plans led by Andy Burnham and John Healey.
- Political figures including Andy Burnham, John Healey, and Kemi Badenoch clashed over national budget policy in Parliament.
- Andy Burnham warns that Labour's spending plans are inadequate and leave Britain unprepared for future challenges.