CIPFA Senior Policy Manager Joanne Pitt discusses the role of reform, financial stability, and workforce investment in the upcoming Spending Review, as the government faces mounting public expectations and political pressure following recent local election results.
Across the country, exam season is in full swing. Students everywhere are hoping the right questions appear on their test papers. I imagine Rachel Reeves is feeling much the same as she prepares for the upcoming Spending Review.
Unlike students, Reeves already knows the question: "How can the Spending Review help drive growth and support our public services?" But her challenge is arguably even greater — crafting an answer that meets high public expectations, especially at a time when trust in government progress appears to be waning.
The importance of this moment is magnified by the recent local election results. Significant gains by Reform have sent a clear signal: the electorate is dissatisfied. The Spending Review, due to be announced on June 11, is a critical opportunity for the Government to demonstrate it is listening, and responding, with ambition and clarity.
This review will shape public sector funding for years to come. If the Government sticks to the commitments made in the Autumn Budget 2024, we can expect resource budgets to be set for three years and capital budgets for five, with a formal review every two years. This longer-term approach is something CIPFA has long advocated for, as it provides the stability needed for smarter financial planning and better value for money.
Still, the big question remains: will this stability translate into improved productivity — public services’ long-pursued, but often elusive, holy grail?
"Value for money" and "reform" are likely to be repeated refrains throughout the review, particularly given the continued fiscal constraints. From our conversations with colleagues across government departments, the message has been consistent and clear: this will be a tough spending review.
So, if reform is the engine for efficiency and growth, the real challenge becomes: where will that reform come from, and how will it be delivered?
At CIPFA, our asks for this spending review place a strong emphasis on public sector reform — specifically, financial stability, preventative approaches, and workforce development.
In collaboration with our partners at Demos, we developed a comprehensive public service reform strategy for central government. We believe this could form the foundation for the first cross-cutting public service reform White Paper since 2011 — should the government choose to take that step.
Together with Solace and the Local Government Association, we also outlined essential reforms to stabilise local government funding. These changes, if implemented, could help unlock economic growth and strengthen communities nationwide.
Our research into workforce capacity highlights another crucial piece of the puzzle: people. Investment in workforce development is essential. A skilled, motivated workforce is the backbone of effective public service delivery. Our findings point to targeted initiatives for upskilling, harnessing artificial intelligence, and broadening the talent pipeline.
Now, all we can do is wait. Rachel Reeves will soon submit her “exam paper,” and the public sector, alongside many other stakeholders, will begin to mark her work. It’s a demanding and diverse audience, and compromises are inevitable. Still, let’s hope she’s done her revision. Even if it’s not an A, a solid pass would be a step in the right direction.