Briefing Note (BN131)

Local government expenditure in Wales: recent trends and future pressures

Date: 05 October 2012
Authors:
ISBN: 978-1-903274-94-1
DOI: 10.1920/bn.ifs.2012.00131

The UK is part-way through significant real-terms reductions in government expenditure as it attempts to deal with the large hole in its public finances. Local government expenditure is not immune from the cuts, and in the 2012 Green Budget, IFS researchers examined the cuts made in 2010−11 and planned in 2011−12 by local authorities in England. This report focuses instead on Wales, and examines both the cuts made to date (up to and including 2012−13) and some scenarios for how much local authorities may have to spend in the period up to 2020−21. It also contains a brief discussion of the economic and fiscal situation and two other important public policy issues for the coming years: changes to the welfare system – which are also intended to reduce public spending – and demographic change.

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