The Department for Communities & Local Government is set to be the “biggest casualty” in the spending review - even compared to other “unprotected” departments, the Institute for Fiscal Studies has warned.
Meanwhile, the chancellor’s commitment to continue on the “same trajectory” as reductions made since 2010, means local government faces cuts of around 3.5% in 2015-16, according to the thinktank’s Green Budget published on Wednesday.
DCLG was “the biggest loser” in the 2010 spending review, their report states, and could expect to be the “biggest casualty by far” in the spending review negotiations currently taking place.
“Given the government’s pledge to allocate the spending cuts in a similar way in 2015-16 to that over the 2010 spending review period, departments such as defence
might be expected to do well, at least relative to other ‘unprotected’ departments, and departments such as communities and local government relatively badly even relative to other ‘unprotected’ departments,” the IFS said.
When chancellor George Osborne used the Autumn Statement to announce the 2015-16 spending review he said education, health and international aid would continue to be protected from cuts. He also said the government would “operate on the principle that departmental resource budgets will continue on the same trajectory in 2015-16 as over the period of Spending Review 2010”.