The Chancellor has lots of demands but not a lot of money. Prisons, the NHS and Adult Social Care are on their knees and further benefit reductions will pile even more pressure on council homelessness budgets. Somehow he needs to fund capital projects and cuts taxes for business? oh and try and reduce the massive deficit which increased during the last Parliament despite a lot of spending reductions in local government and other services. Does it all add up? We will see tomorrow.
The expected worsening of the public finances, where the Chancellor will allow significantly higher borrowing to take the strain. He may also compound the issue by raising spending in areas like infrastructure to show Britain is “open for business” post the Brexit referendum, and for “just about managing” families in line with the PM’s leadership campaign; The urgent issues in services like health and prisons, which are at breaking point. The Chancellor will probably try to delay additional action until the Budget, combining any extra cash with serious reform plans. The limited potential for cuts in other budgets. Here the Chancellor will probably reduce aid spending in line with falling GDP, but not defence spending. He is unlikely to make any reductions in pensioner benefits, or to yet be able to factor in any Brexit-related savings from reduced EU contribution