“The Chancellor’s announcement today adds to our knowledge about just how challenging the fiscal picture is, and gives more information about the difficult decisions she is going to have to make to bring the public finances under control. Although £22bn is less than 2% of annual public expenditure, it still represents a sizeable shortfall that needs to be addressed before the government can start delivering on its priorities, particularly to kickstart growth.
“One of the major choices the Chancellor has is in the fiscal rules she adopts, and we hope that she will revisit the debt rule that constrains her ability to invest more, and allow her to deliver the economic growth that is at the core of the new government’s mission.
“For too long there has been a focus on managing the pennies at the expense of ensuring the millions and billions are being spent effectively and so we are pleased that the Chancellor has announced plans for a new Office for Value for Money to improve the effectiveness of financial management in central government. We also support the move to three-year rolling Spending Reviews every other year, providing the certainty public bodies need to plan ahead.”
ENDS
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