Spending review

84.  For almost two decades the spending framework for Whitehall departments has been set through the spending reviews that set spending parameters for three to five years. A spending review is necessary this year to provide certainty to Departments on their funding allocations for next year at least. This year's review has been delayed with the Chancellor indicating that he may not complete a spending review before Brexit. That delay is already having an impact on policy decisions, with, for example, police and fire service funding for 2020-21 which will not be settled until the spending review.96

85.  There are other key policy changes which require some certainly over funding levels. These include the much-vaunted reforms to probation services; the UK Shared Prosperity Fund;97 nuclear submarine decommissioning98 and the wider defence equipment budget.

86.  If the Spending Review does not take place there will need to be a mechanism for setting departmental budgets for next year. Even a roll over from this year's settlement will be subject to much special pleading by departments. Given the likely impact on policy decisions it is not clear that the knock-on impact on policy delivery has been considered fully by ministers. There are also day-to-day impacts on a range of organisations and services which rely on central government funding.

87.  This situation is another example of how Brexit has deprioritised the Government's business as usual.




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96  Police Pension Liabilities: Urgent Question, 6 November 2018

97  Committee of Public Accounts, Oral evidence: Local Enterprise Partnerships: progress review

98  Committee of Public Accounts, Oral evidence: Nuclear submarine defueling and dismantling, HC 2041, 1 May 2019, qq 6-8