Government finances and spending

By 2026, despite the sharp reduction in borrowing, the UK is forecast to see the second-biggest increase in government debt out of 28 economies for which comparable forecasts are available – with only the US seeing a bigger increase.

The IFS Green Budget 2021, in association with Citi and with funding from the Nuffield Foundation, analysed the ongoing impacts of the pandemic, its economic legacy, and the big decisions confronting Chancellor Rishi Sunak as he prepares for his upcoming Budget and Spending Review.

The IFS Green Budget looks at the ongoing impacts of the COVID-19 pandemic, as the Chancellor aims to secure a lasting recovery and deliver on the Government’s other objectives and priorities.

"Both government funding decisions over the past decade and the structure of council tax have worked against “levelling up”." Paul Johnson in The Times on local government funding.

At this IFS event, experts discussed new financial pressures and service responsibilities for councils in England and Wales as a result of the COVID-19 pandemic, forthcoming reforms to the council funding system and social care reforms.

Our social care system is the unfinished business of 1946 and the direct descendant of the poor law of 1834; the decision to fund it through a levy is a throwback to a time when we had a social insurance system. And that’s the trouble. If you want a rational system for tax, welfare and public spending, best not to start from here.