OBR Growth Projections Departmental Spending 2026-03-10
2026-03-10
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question addresses the potential impact of the OBR's growth projections for 2026 on future departmental spending levels.
Whether she has made an assessment of the potential impact of the Office for Budget Responsibility's growth projections for 2026 on future departmental spending levels.
At the spring forecast last week, my right hon. Friend the Chancellor showed that we have the right economic plan. Our plan has lowered inflation, borrowing, debt and debt interest payments. Our approach means that investment is up, helping to create the conditions for growth across the UK. Our firm approach to public spending is helping to keep public finances on a sustainable path.
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Assessment & feedback
The potential impact of the OBR's growth projections on future departmental spending levels was not directly addressed.
Response accuracy
Q2
Partial Answer
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Context
The Chancellor has pencilled in 0.3% real-terms growth in public spending in 2029-30, with health spending at its historical average, special educational needs and disabilities spend as per proposals, and defence at 3%. This leaves a 2.5% real-terms cut in unprotected Departments amounting to £13 billion.
Given the Chancellor's plans for public spending and the allocation to various departments, what plans do the Chancellor and Chief Secretary to the Treasury have to address the £13 billion gap in the 2029-30 envelope?
If the right hon. Gentleman looks at the plans that we set out through our spending review, he will be clear that we are increasing spending by £50 billion a year by 2028-29 compared with the previous Government's plans. At the same time, we are ensuring that taxpayers get value for money. We are making £3.9 billion of efficiency savings by 2029-30, rising to £5 billion by 2030-31.
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Assessment & feedback
The £13 billion gap specifically
We Are Increasing Spending By £50 Billion A Year By 2028-29 Compared With The Previous Government'S Plans
£3.9 Billion Of Efficiency Savings By 2029-30, Rising To £5 Billion By 2030-31
Response accuracy
Q3
Partial Answer
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Context
The Government's spending plans are contingent upon several unlikely conditions: no further economic growth downgrade, no need for significant energy support, and obtaining £4.8 billion in salary sacrifice revenues by 2029-30, which the industry views as unrealistic.
Given the uncertain economic outlook and the likelihood of these conditions not being met, will the Minister prioritise cuts in public spending over tax increases if the spending plans start to fall apart?
I will give the hon. Gentleman an “if”. If he were honest and remembered his time in Liz Truss's Government, he might not have the gall to make comments like that across the Dispatch Box—
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Assessment & feedback
The prioritisation of cuts in public spending over tax increases
If He Were Honest And Remembered His Time In Liz Truss'S Government, He Might Not Have The Gall To Make Comments Like That Across The Dispatch Box
Response accuracy