Resolution Foundation’s latest analysis looks at the changing size and shape of the state and what decisions the government will need to make going forward.
- Underpinned by an assessment that it must both deliver a surplus in order to reduce debt and do so via spending cuts, the government is set to reduce the size of the state towards historic lows
- Subjective choices about the split between DEL and AME, consumption and investment and different services and groups fundamentally alter the shape of the state over time
- In particular, the nature of the post-crisis consolidation – allied with demographic changes – is serving to increase the share of overall spending on older people and health while reducing the share going to working-age families and economic growth
- This may or may not be the right balance to strike, but there is a danger that we fail to check in on these developments until after they occur – what do we want the state to do?