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19 October 2021

How government departments still bear the scars of austerity

Spending on unprotected areas is set to be 25 per cent lower by the middle of the decade than in 2010.

By Ben Walker

Over a decade after the Conservative-Liberal Democrat coalition government imposed austerity, most government departments have yet to regain the spending power they enjoyed in 2010. A Resolution Foundation analysis of spending found that funding for public services outside of health, defence, education and international development is set to be a fifth lower by the middle of this decade than in 2009-10.

Real-terms departmental spending has fallen in areas including transport (51 per cent), work and pensions (42 per cent), justice (28 per cent) and education (3 per cent). But spending on defence, the Home Office and health and social care has increased, while spending on the Foreign Office has risen as a result of its merger with the Department for International Development.

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