public finance

In our accompanying report, Light at the end of the fiscal tunnel?, we highlighted the challenges the Westminster government is facing in providing good quality public services for the people of the United Kingdom at a time of spending reductions. Despite over eight years of austerity, these challenges do not appear to be getting any easier.

In his recent Spring Statement, the chancellor said that he saw light at the end of the fiscal tunnel. We are afraid that this will turn out to have been an illusion. While public borrowing has been reduced to sustainable levels, our analysis of the prospects for the public finances points to severe challenges ahead.