Abstract:
The upcoming Spending Review will involve some very difficult decisions on public service spending, with virtually no headroom against the government's fiscal rules. The government has set out plans for overall departmental spending to grow by about 1.2% per year in real terms between 2025-26 and 2028-29. However, after accounting for the likely cost of existing commitments on defence, health and childcare, IFS analysis suggests that 'unprotected' spending will fall by about 1% per year in real terms between 2025-26 and 2028-29, or by about 3% in total. This currently includes most spending by the Department for Education (DfE), excluding the early years and childcare. This report focuses on the choices and challenges facing policymakers on education in the upcoming Spending Review, with a particular focus on schools and colleges.