Iain Murray, CIPFA Director of Public Financial Management (PFM)
At CIPFA, we view this budget as a beginning rather than a conclusion. The government has initiated a foundation to address long-standing challenges within the public sector. However, our key message is clear: for meaningful, lasting change, this effort must continue into next year’s spending review to deliver significant policy and structural reform.
Immediate relief amid mounting pressures
This year’s budget increases funding for frontline services, providing much-needed short-term relief to a sector stretched to its limits. Years of underinvestment have created critical funding deficits, especially in areas like Special Educational Needs and Disabilities (SEND). While the £1 billion increase acknowledges an urgent need, it merely scratches the surface of a national deficit currently estimated at £3 billion, projected to rise to £8 billion by 2026. To achieve true reform in SEND services, a sustained, comprehensive approach is necessary - one that prioritises both long-term funding and improvements in service delivery.
Local Government - clarity needed on financial models
The budget’s boost to councils' core spending power is a positive development. However, without clear guidelines on new funding formulas, local authorities are left in uncertainty as they finalize their budgets. With deadlines fast approaching, predictable and transparent funding models are essential for local authorities to transition from short-term fixes to robust, sustainable financial planning. CIPFA calls for detailed clarity on these models to empower councils in making informed decisions.
Beyond healthcare - the need for integrated funding
While increased NHS funding responds to public concerns, it misses a crucial opportunity for broader reform, including on how we protect and account for funding for prevention. Health outcomes are intrinsically linked to community factors such as housing, education, and social services—areas managed by local authorities. CIPFA advocates for integrated funding approaches that bridge health services and local government. By investing in the social determinants of health, the government can improve both efficiency and community-centred care, ultimately leading to better population health outcomes.
Expanding local decision-making power
The Autumn Budget also enhances decision-making powers for mayors and combined authorities, a significant step toward more responsive governance. Increased autonomy in fund allocation allows local leaders to make decisions that better reflect their communities' needs. However, CIPFA emphasizes the importance of balanced restructuring to avoid unnecessary complexity in local governance. Effective partnerships between mayors, councils, and service providers are crucial to creating a streamlined public service system that truly serves its constituents.
What’s next? From emergency support to sustainable investment
While this budget represents progress, it is not a complete solution. CIPFA’s primary call to action is for the government to look beyond immediate responses and prioritize sustainable, long-term investment in the public sector. A genuinely resilient framework for public service delivery can only emerge through sustained and thoughtful reform that moves away from merely reactive measures.
Closing thoughts
In the months ahead, CIPFA will focus on advocating for clearer and more accountable government spending while supporting local authorities through these financial transitions. By emphasising transparency, long-term investment, and community-centred reforms, we believe it is possible to build a stronger, more effective public sector for all.
CIPFA remains committed to engaging with policymakers, public service leaders, and local authorities to ensure the meaningful reform our public sector deserves. Through these efforts, we can pave the way for a public service landscape that is both resilient and responsive to the needs of our communities.