The uncertainty of the outcome of the UK withdrawal from the European Union and the impact it may have on public sector will make the UK Treasury's 2019 Spending Review more complicated than in the past years, the London-based Institute for Government said in a report on Thursday.
MOSCOW (Pakistan Point News / Sputnik - 13th September, 2018) The uncertainty of the outcome of the UK withdrawal from the European Union and the impact it may have on public sector will make the UK Treasury's 2019 Spending Review more complicated than in the past years, the London-based Institute for Government said in a report on Thursday.
"To describe the context in which next year's review will take place as 'challenging' would be an understatement. The Government does not have a parliamentary majority. It will be taking decisions (most likely) in the immediate aftermath of the UK's exit from the European Union ... Brexit throws a fog of uncertainty over the timetable for the next Spending Review; we understand the Government is still considering whether a one-year spending review is all that is reasonable to prepare," the report read.
Moreover, the upcoming review might be also jeopardized due to the lack of connection between the state agencies' performances and the volume of funds they receive.
"Spending reviews ... are often reduced to a contest between ministers for scraps of spare cash, fought out in high-profile media spats. The Treasury doesn't look at performance when allocating money for public services, while high staff turnover undermines expertise in judging what spending is needed," the report said.
The UK government carries out Spending Reviews every three years or so, according to the Institute.
Since the United Kingdom launched the process of leaving the European Union in March 2017, various sectors of the UK economy, including banking and finance, have been facing instability over the possibility of hard Brexit, since both parties have been failing to agree on the issue of future economic relations.
