FINANCE

The false divide has become a false economy

Jessica Studdert says: 'The Spending Review is an opportunity to shift spending towards long-term, mission-aligned objectives even within a tough fiscal climate, but the Government needs to end the false divide between protected and unprotected departments.'

Jessica Studdert © New Local

Jessica Studdert © New Local

The false divide between ‘protected' and ‘unprotected' departments is becoming a false economy.

In Whitehall, silos are easy to uphold. They literally exist in different buildings – health, education, local government, work and pensions. Each has separate teams, accountability and ministerial oversight. From inside the Treasury building, making tough decisions about spending allocations, it is logical to single out each department separately.

The consequences of artificial separation between departments have long been seeping into our collective experience of public provision

And so, over the years of spending restraint, the notion of departments protected from deep cuts (health and education) and those unprotected (the rest, including local government) has defined parameters. Now, once again, ahead of a stringent summer Spending Review, unprotected departments are being required to model up to 11% reductions.

On an individual level, there is a deep interconnection between the outcomes each department is responsible for. Education is a big determinant of job prospects. Unemployment impacts health, which is a barrier to employment. And lots of people out of work mean rising welfare costs.

The consequences of artificial separation between departments have long been seeping into our collective experience of public provision. Reduced spending in one area creates rising costs in another.

For example, as unprotected social care is pared back, unmet demand pops up in protected, but rising, health budgets. The false divide has become a false economy – acute costs mount while the case for preventative investment upfront to alleviate crises is all the harder.

The Spending Review is an opportunity to shift spending towards long-term, mission-aligned objectives even within a tough fiscal climate – but the Government needs to end the false divide between protected and unprotected departments.

Bridging national policy silos and individual experiences, it is across places that budgets can be pooled, services can integrate around community needs and better overall outcomes can be more effectively sustained.

Jessica Studdert is chief executive at New Local

FINANCE

The local impact of disability benefits reforms

By Deven Ghelani | 24 April 2025

Disability benefits changes will hit the North and Wales the hardest, and the 10 councils impacted the most face economic costs five times higher than the av...

FINANCE

The paradox of populism

By Michael Burton | 23 April 2025

When it comes to public spending, left and right are in agreement says Michael Burton.

FINANCE

The six challenging Cs

By Michael Coughlin | 16 April 2025

As councils start grappling with the practicalities of local government reorganisation, Michael Coughlin looks at some of the potential negative consequences...

FINANCE

Stepping up to the housing challenge

By Martin Ford | 15 April 2025

With the Government intent on ramping up housebuilding figures, the delivery of accompanying infrastructure and affordable housing has never been more import...

Jessica Studdert

Popular articles by Jessica Studdert