Displaying items by tag: public spending

The UK government has confirmed that the HS2 high-speed rail project will be delayed beyond its 2033 target, with no revised opening date provided. Transport Secretary Heidi Alexander described the project as an “appalling mess,” citing a "litany of failure" in cost management and missed deadlines. Originally budgeted at £33bn in 2012, costs have surged by £37bn, with some estimates reaching up to £106bn. Alexander criticised years of ineffective contracts, poor oversight, and scope changes under successive Conservative governments. Two recent reports into HS2’s management have exposed systemic failings: premature construction, lack of technical expertise, and bloated administrative structures. Mark Wild, HS2’s current CEO, acknowledged external pressures like the pandemic and Brexit but emphasised persistent internal issues. The project's scope has been repeatedly reduced, with the Birmingham-Leeds and Birmingham-Manchester links scrapped. The government has now appointed Mike Brown, former Transport for London commissioner, as the new HS2 chair to lead a reset in UK infrastructure planning. Alexander promised a further update on costs and deadlines by the end of the year.

Scotland's deputy first minister, Shona Robison, has announced £500 million in public spending cuts to address financial pressures. The cuts, which span various sectors, aim to balance Scotland’s budget while facing ongoing economic challenges. Robison emphasised that difficult decisions were necessary to manage increasing demands on public services and rising costs. The cuts will affect education, healthcare, and transport, sparking concerns from public sector workers and unions. Critics argue that the reductions could lead to decreased quality in essential services and further strain on already under-resourced sectors. Robison defended the cuts as crucial to prevent long-term financial instability, noting that the government is committed to protecting vital services as much as possible. However, she acknowledged that the cuts were far from ideal and called for a review of how public funds are distributed and used efficiently.

Nottingham City Council has effectively declared bankruptcy by issuing a Section 114 notice, indicating it cannot cover its expenses within the current financial year. The notice does not affect the council's ability to deliver statutory services such as waste collection and child safeguarding. Despite attempts to bridge a budget gap, which stood at £26 million in July and has since narrowed to around £23 million, the council's struggles persist. These financial woes have been attributed to significant central government funding cuts of more than 40% since 2010. Three Labour MPs representing Nottingham have criticised the Government for these cuts and urged it to provide adequate funding to support local services, especially given the rising demands for social care and homelessness services. They emphasised the need to shield residents from further cuts to local services amidst declining living standards. This news comes two months after Birmingham declared itself bankrupt: see

In August, high inflation led to increased government finances, creating pressure on Chancellor Jeremy Hunt to boost support for state services, according to the Resolution Foundation. Government borrowing for August was £11.6 billion and nearly £70 billion for the first five months of the current fiscal year. This left the Chancellor £11.4 billion better off for 2023-24 than March's official forecasts had predicted. The Resolution Foundation noted that while higher inflation had led to increased tax payments, it had strained public services with pre-inflation budget allocations, making future public service cuts less tenable. Conservative backbenchers have opposed increasing department budgets in favour of tax cuts, while former prime minister Liz Truss has advocated tax cuts to stimulate economic growth. The borrowing figures highlight the need to manage inflation and government finances.