The UK's Spending Review, aimed at aligning department budgets, faces skepticism from economists regarding its uniform 10% cuts to administration budgets across various central departments. Helen Miller from the Institute for Fiscal Studies raised concerns about the feasibility and accuracy of the zero-based review process that led to these cuts. The review aims to balance tax raises, infrastructure investment, and cost savings, with a particular emphasis on utilizing AI and digital transformation for efficiency improvements. This review marks the first multi-year plan since 2021, affecting key departments such as Health and Education.
Is it right that they can all make exactly 10 percent? That seems... you know... I'd be very surprised if that was the correct answer that came out of [the ZBR].
The government's multi-year spending review, the first since 2021, set out plans for department spending and savings, in an effort to find the right balance between raising taxes, investing in infrastructure, making cuts, improving services, and increasing borrowing.
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