Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

SAVINGS TO PAY FOR PUBLIC SPENDING BOOST

  • Comment
The government's comprehensive spending review, set to be unveiled on 18 July, will signal a big repayment of publi...
The government's comprehensive spending review, set to be unveiled on 18 July, will signal a big repayment of public debt - with some of the savings on debt interest used to provide a further boost to public spending, reported The Sunday Times (Business, p1).

But the Treasury is confident the planned rise in public spending, most of which was foreshadowed in the Budget, will not force interest rates higher.

The CSR will emphasise extra spending on health, education, transport and crime, and confirm the proceeds of the£22.5bn third-generation mobile-phone auction will be used to repay government debt.

A Price WaterhouseCoopers analysis suggests savings on debt interest could allow Chancellor Gordon Brown to boost public spending by 5% a year in real terms over the next three years and still stay within his fiscal rules.

However, the firm expects actual spending to rise by a little over 3% a year in real terms.
  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.