PA Consulting comments on the Autumn Budget

Laura Marsden, public sector expert, says:

With the Spending Review and the government’s 10-year plan still to come in 2027, this budget has left much of the detail for next year. While today’s headlines may seem modest, this budget was all about small actions that lay the foundations for longer-term change and get back on track.

As John Healey set out, government departments made a strong start on savings, achieving £16 billion in savings from across departments. The question now is whether they can sustain that pace. It’s also yet to be seen how far the promised digital overhaul of the civil service will help to deliver further efficiencies.

As expected, one of the key priorities the chancellor emphasised was devolution, aiming to drive growth in every postcode across the UK. New deals and a roadmap for fiscal devolution offer places greater scope to retain the receipts of their growth, allowing them to invest it directly back into the area it was generated. Combined with innovation, these measures could help more regions build on their strengths and unlock growth.

In our recent decisive decade insight, we explored the importance of unlocking regional growth. We found, if our largest 12 cities outside of the capital enjoyed the same productivity as the national average, our economy would be £100 billion bigger today.

The Good Growth Fund for regional mayors was also announced, offering an exciting opportunity for local growth. But mayoral authorities must ensure they have the right capability and capacity to make the most out of it for their areas.

Alongside the commitment to fully fund the defence investment plan, all of these measures are important building blocks for growth, investment, and fiscal responsibility. Next year’s Spending Review will be a critical moment for understanding how those ambitions translate into delivery.