UK Departmental Spending Cuts and Increases 2015-16
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The document outlines the UK government departmental spending limits from 2015-2016 and the challenges the Chancellor of the Exchequer faced in balancing budgets. Over time, ringfences were placed around NHS, schools, and overseas aid spending. Additional funds were pledged to the NHS, defense, and security services. The Chancellor announced spending cuts from some departments but also increases for others, including the NHS, defense, international aid, and transport. By the Spending Review, the Chancellor had found cuts but also allocated extra funds to priority departments.
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UK Departmental Spending Cuts and Increases 2015-16
- 1. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn The Chancellor was originally looking for £20bn of departmental spending cuts by 2019/20, but limited his room for manoeuvre… In play for cuts Departmental expenditure limits, day-to-day and capital spending, 2015-16
- 2. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn First the Conservative manifesto placed ringfences around NHS and schools spending, and pledged that the Chancellor would find real increases for overseas aid… In play for cuts Departmental expenditure limits, day-to-day and capital spending, 2015-16 Out of play for cuts Extra needed
- 3. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn First the Conservative manifesto placed ringfences around NHS and schools spending, and pledged that the Chancellor would find real increases for overseas aid… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 4. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Then in the election campaign, the Conservatives pledged to find an extra £8bn of spending for the NHS, adding to the £20bn the Chancellor needed to find… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 5. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Then in the election campaign, the Conservatives pledged to find an extra £8bn of spending for the NHS, adding to the £20bn the Chancellor needed to find… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 6. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Soon after the election, pressure from the backbenches saw extra real resources pledged to defence, again adding to the cuts needed elsewhere… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 7. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Soon after the election, pressure from the backbenches saw extra real resources pledged to defence, again adding to the cuts needed elsewhere… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 8. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn At the July Budget, the Chancellor protected capital spend, which makes a big difference for capital intensive departments like DfT and DECC… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 9. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn At the July Budget, the Chancellor protected capital spend, which makes a big difference for capital intensive departments like DfT and DECC… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed
- 10. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn The Chancellor started to announce his cuts, saying that four areas covering DCLG, DfT, Defra and HMT had been cut by 30% on average… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 11. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn The Chancellor started to announce his cuts, saying that four areas covering DCLG, DfT, Defra and HMT had been cut by 30% on average… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 12. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Then following the events in Paris, the Chancellor announced more money for the security services, which make up the majority of CO’s money… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 13. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Then following the events in Paris, the Chancellor announced more money for the security services, which make up the majority of CO’s money… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 14. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn And just before the SR, the Chancellor announced 21% savings from four more departments – DWP, DECC, HMRC and the non-security bits of CO… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 15. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn And just before the SR, the Chancellor announced 21% savings from four more departments – DWP, DECC, HMRC and the non-security bits of CO… Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 16. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn The Chancellor needed to find further cuts from the areas still “in play”, both to get the £20bn he started out looking for and to fund the rest of his pledges. Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra needed Cuts found
- 17. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn At the Spending Review, five departments shared between them £10bn of increases – as expected DfID, DH, MoD and CO; and DfT which will double its capital spend Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 18. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn At the Spending Review, five departments shared between them £10bn of increases – as expected DfID, DH, MoD and CO; and DfT which will double its capital spend Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 19. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn But in the end the Chancellor did not protect departments’ capital budgets, in total cutting them by £3.6bn in 2019-20 compared to the July budget Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 20. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn But in the end the Chancellor did not protect departments’ capital budgets, in total cutting them by £3.6bn in 2019-20 compared to the July budget Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 21. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn He also cut the unprotected parts of health and education; while DH will gain overall, DfE will see it’s total budget reduced by over £1bn by 2019-20 Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 22. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn He also cut the unprotected parts of health and education; while DH will gain overall, DfE will see it’s total budget reduced by over £1bn by 2019-20 Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 23. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Finally the Chancellor found nearly £12bn from the remaining areas in play, with the cuts to one department, DCLG, accounting for around half this total Departmental expenditure limits, day-to-day and capital spending, 2015-16 In play for cuts Out of play for cuts Extra found Cuts found
- 24. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn Finally the Chancellor found nearly £12bn from the remaining areas in play, with the cuts to one department, DCLG, accounting for around half this total Departmental expenditure limits, day-to-day and capital spending, 2015-16 Out of play for cuts Extra found Cuts found
- 25. DH £117bn DfE £58bn MoD £35bn DCLG £18bn BIS £17bn HO £11bn DfID £10bn DfT £8.5bn FCO £1.9bn DWP £6.5bn DECC £3.9bn HMRC £3.7bn CO £2.9bn Defra £2.1bn MoJ £6.6bn DCMS £1.5bn HMT £0.1bn The Spending Review published the new departmental expenditure limits, confirming the resources each department will have by 2019-20 Out of play for cuts Extra found Cuts found Departmental expenditure limits, day-to-day and capital spending, 2015-16
- 26. DH £120bn DfE £57bn MoD £35bn DCLG £9bn BIS £12bn HO £10bn DfID £13bn DfT £12.3bn FCO £1.0bn DWP £5.2bn DECC £3.0bn HMRC £3.0bn CO £3.1bn Defra £1.8bn MoJ £5.6bn DCMS £1.3bn HMT £0.1bn The Spending Review published the new departmental expenditure limits, confirming the resources each department will have by 2019-20 Out of play for cuts Extra found Cuts found Departmental expenditure limits, day-to-day and capital spending, 2019-20 (in 2015-16 prices)
- 27. DH £120bn DfE £57bn MoD £35bn DCLG £9bn BIS £12bn HO £10bn DfID £13bn DfT £12.3bn FCO £1.0bn DWP £5.2bn DECC £3.0bn HMRC £3.0bn CO £3.1bn Defra £1.8bn MoJ £5.6bn DCMS £1.3bn HMT £0.1bn Five departments – DfID, DH, MoD, CO and DfT – gained by around £10bn in total, while the other departments lost just over £20bn of resources between them Out of play for cuts Extra found Cuts found Departmental expenditure limits, day-to-day and capital spending, 2019-20 (in 2015-16 prices) © Institute for Government, 2015