Joanne Pitt, Senior Policy Manager
The Autumn Budget 2024 will be remembered not only for its contents but as a historic milestone - marking the first UK budget delivered by a female chancellor. In a global climate where the rights of women and girls face rising challenges, this moment is worth celebrating, transcending political affiliations.
Chancellor Rachel Reeves, an economist, emphasised transparency, heavily referencing the Office for Budget Responsibility (OBR) as she outlined the budget. The budget’s endorsement from the International Monetary Fund (IMF) the following day likely added weight to her announcements. However, OBR projections suggest that UK economic growth is set to slow from 2% in 2025 to 1.5% by 2027, despite a £70 billion annual increase in spending. This slower growth poses a challenge, as a robust economy is crucial for sustaining public finances and supporting essential services long-term.
Local government leaders received some promising headlines, yet the specifics remain to be clarified in the December finance settlement. The budget proposes a 3.2% increase in core spending power for 2025-26, supported by £1.3 billion in new grants, with at least £600 million dedicated to social care. While this increase is encouraging, many in local government caution that it falls short of addressing the deep-rooted financial challenges faced by councils, who often rely on a stable funding framework to plan effectively.
The budget also acknowledged the need for funding allocation models that accurately reflect local needs and revenue. This long-requested reform could address regional disparities in service funding and ensure resources are directed where they are most needed. However, there is still a need for greater clarity on the formula that will guide this allocation.
The focus on vulnerable populations, particularly children, signals a positive shift. The budget includes a £1 billion boost for Special Educational Needs and Disabilities (SEND) funding, which is a start, though far from the amount required to meet the estimated £3 billion deficit. The announcement of new funding for kinship care and foster support reflects a proactive approach, aiming to support children before they require costly social services, benefiting both society and public finances.
Further measures for people with disabilities include an £86 million increase in the Disabled Facilities Grant, enabling an additional 7,800 home adaptations. These adaptations are expected to help reduce hospitalizations and support independent living, freeing up resources elsewhere in the public sector.
In housing, the budget includes adjustments to Right to Buy policies to provide councils with more flexibility, as well as £233 million in new funding in 2025-26 to address homelessness. While additional funding is crucial, tackling the underlying issues in housing will require significant investment and strategic planning reforms.
While the budget introduces some helpful measures, it emphasizes the need for comprehensive reform across sectors. The new government has already established task forces on critical issues such as homelessness, SEND funding, and devolution. While these initiatives are promising, history shows that establishing task forces is only the beginning - the challenge lies in translating recommendations into meaningful, lasting change.
Ultimately, the budget sets a positive direction, but long-term solutions and a commitment to reform are essential to address the persistent challenges in the public sector.