29 June 2007
The government must do more to prepare the public for the reality of the looming slowdown in public spending in the run-up to this autumn's Comprehensive Spending Review, MPs have warned.
The Commons Treasury select committee accuses ministers of being 'too timid' and not doing enough to initiate debate about the choices that will have to be made between competing priorities in the next spending period.
Its report, published on June 25, says the government needs to start giving clear indications of some of the decisions under consideration, so it can explain to the public why spending is being reined in.
John McFall, the committee's chair, said the government needed to 'take risks' and give a proper account of the reasons for the changing fiscal climate.
'Our report highlights that the years of plenty in public spending are drawing to a close. The Treasury has not done enough to prepare the public for the squeeze that lies ahead,' he said.
The committee cites the pressure that migration exerts on public spending as an example where the government should be bolder, and is calling for an analysis of migration and the resulting demands on individual public services. It says this should be published alongside the funding allocations made in the CSR.
Committee members also examined the 'ambitious' efficiency savings targets that have already been detailed for the 2008 to 2011 spending period.
They called for more external audit of the impact on service quality, and the establishment of 'a coherent framework for the verification and reporting of savings on a consistent basis'.
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