Economists Express Doubts Over UK Spending Review’s Proposed 10% Budget Cuts – The Register

Leading economists express skepticism regarding the UK government’s Spending Review, which mandates a uniform 10% cut to administrative budgets across diverse departments. Critics, including Helen Miller from the Institute for Fiscal Studies, raise concerns over the rationale behind this standard percentage, questioning its feasibility given variances in departmental needs and ongoing projects. The review aims to balance tax increases, infrastructure investments, and service improvements while pursuing £14 billion in savings through efficiency measures, partly via AI and digital transformation. Despite claims from several departments about utilizing technology to enhance productivity and reduce workloads, doubts remain about achieving equal cuts without proper evidence of efficiency gains. Moreover, the government plans to curtail consultancy expenses significantly and expects departments to demonstrate a minimum of 1% annual efficiency improvements. Overall, the emphasis is on technology-driven reform, yet significant challenges and uncertainties persist as departments navigate these budgetary constraints.

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