CIPFA Responds to Autumn Statement


The Chartered Institute of Public Finance and Accountancy (CIPFA) has underlined the difficulty that departments will face in further reducing their budgets.

In his Autumn Statement, the Chancellor of the Exchequer announced a 1% reduction in departmental expenditure limits in 2013/14 and a 2% reduction in 2014/15.

CIPFA also highlighted a number of the Autumn Statement’s features which were anticipated in CIPFA's recent report "The Long Downturn" including:

  • A further lowering of OBR growth forecasts;
  • The failure to meet the fiscal target for aggregate public debt to be falling in 2015/16;
  • The reallocation of resources within existing spending plans to fund initiatives to stimulate the economy;
  • The tax incentivisation of private sector investment.

Steve Freer, CIPFA's Chief Executive, commented,

“The announcement of a 1% further cut in departmental budgets next year, rising to 2% in 2014/15, raises the bar for public bodies across the country. Most have long since exhausted measures which have limited impact on service delivery to the public. In many organisations the greater part of this further salami slice is likely to go straight to front line budgets.

“The Department for Communities and Local Government budget for support to councils is not impacted by the 1% cut in 2013/14. Presumably this is an acknowledgement of the significant cuts already required  next year, as well as recognition of the major financial system reforms affecting local authorities from 1 April, 2013. However, councils must prepare for a further reduction in their grant from central government when the 2% reduction comes into effect in 2014/15.”



CIPFA Press Office

T: 020 7543 5600


Notes to Editors:


CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.