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Public spending
·
Fiscal policy
·
Economy and public finances

Shape shifting: the changing role of the state during fiscal consolidation

10 November 2015

Matthew Whittaker
Matthew Whittaker
Adam Corlett
Adam Corlett
David Finch
David Finch

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.

Key findings

  • 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?

Further reading

Here today, gone tomorrow
Putting Spending Review 2020 into context
·
Torsten Bell, Nye Cominetti, Karl Handscomb, Jack Leslie, Cara Pacitti, Hannah Slaughter, James Smith, Daniel Tomlinson
The Covid state
Analysis of the economy and public finances ahead of the 2020 Spending Review
·
Karl Handscomb, Jack Leslie, Cara Pacitti, Daniel Tomlinson, James Smith
Unhealthy finances
How to support the economy today and repair the public finances tomorrow
·
George Bangham, Adam Corlett, Jack Leslie, Cara Pacitti, James Smith
Matthew Whittaker
Matthew Whittaker Deputy Chief Executive
Adam Corlett
Adam Corlett Principal Economist
David Finch
David Finch Senior Research Fellow
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