Public sector pay rises hand Reeves a £6.7bn headache ahead of Budget
High borrowing costs and public sector pay rises have given chancellor Rachel Reeves a £6.7bn headache ahead of next week’s Budget.Borrowing in the first six months of the year stood at £79.6bn, £1.2bn higher than a year earlier and almost £7bn higher than the Office for Budget Responsibility watchdog – which monitors the state’s finances – had estimated.The surprise rise in borrowing came despite the cut to Britain’s expenditure on winter fuel allowances, which will now be means-tested and will be paid next month.Jessica Barnaby, deputy director for public sector finances at the Office for National Statistics, which released...
Federal policy choices in 2025 could impact state and local finances
Public policy discussions are often siloed between levels of government. Federal, state, county, and municipal governments, as well as school districts and other public entities, all have different sets of responsibilities. Policymakers in offices at each level of government typically focus on issues over which they have the most direct control. However, these governments are […]