Government finances and spending

Public finance data out today show that borrowing overshot the official forecast made at last month's Spring Statement by £15 billion.

Rachel Reeves should consider increasing the basic rate, just as Denis Healey did in 1975 

How much does the government spend in each region of England and how does that compare with regional economic activity?

Today’s SFC report highlights the fiscal challenges facing the Scottish and UK governments over coming decades.

The tortured maths behind the chancellor’s fiscal headroom suggest her ‘ironclad’ fiscal rules are having unintended consequences on real-world policy

All IFS analysis to date of Chancellor Rachel Reeves' 2025 Spring Statement.

What were the decisions and trade-offs made by Chancellor Reeves?

In response to deteriorating global economic conditions, Rachel Reeves chose to fine-tune her spending plans to continue to meet her fiscal rules. 

Today, the Office for National Statistics published new figures on government revenues, spending and borrowing.

The reforms announced today, to be implemented or consulted on, represent a fundamental change to the way that the state supports out-of-work people.

Rachel Reeves gives herself so little room for manoeuvre that she creates costly uncertainty when the choice is obvious: raise taxes or cut spending 

What are the Chancellor’s options if – and it is very much an if – the upcoming Spring Forecast puts her on track to miss her fiscal targets?

The government’s decision to boost military funding out of international aid felt panicked. But this a watershed moment that needs a proper strategy.

Higher defence spending will be offset in the short term by lower spending on overseas aid

This report analyses the Scottish Government’s Budget for 2025–26, with chapters on tax strategy, school spending, public sector pay and more.

New data shows borrowing for this year running higher than forecast at last October’s Budget.

Funding and spending growth are set to slow. Without a top-up, health spending will be flat in 2025–26 and tricky trade-offs elsewhere loom too.

How have public sector pay and employment changed in Scotland in recent years and what are the implications of those changes?

We borrowed and spent more than other countries to respond to the pandemic and the sharp rise in energy prices two years later.

Scotland’s schools are relatively well funded. Falling pupil rolls and workforce planning represent both challenges and opportunities going forwards.