Title

FINANCE

Budget 2017: A gimmick-free budget from 'Mr Spreadsheet'

The chancellor's Budget gives extra cash for care, but there are no major surprises in store, says Michael Burton.

Apart from the £2bn extra funding for social care the Budget was, as predicted, devoid of shocks or gimmicks. The Chancellor Philip Hammond, ‘Mr Spreadsheet,' knows he has little scope for either pushing up spending or cutting taxes. 

Although January's public finance figures were better than expected, the UK is still awash with public sector debt. The deficit may be down from its 2009 peak of 9.9% of GSP to 2.6% this year, but total debt is still eye-wateringly high.
 

As the Chancellor said, £50bn is spent annually on debt interest alone. Debt as a percentage of GDP is forecast to be 79.8% by 2021/22. The summer 2010 Budget forecast it would be 67.4% by last year.

There were no surprises about the package of help for small business in the form of rate relief. The Budget emphasised that the total cost of £435m will be reimbursed to local authorities. While welcome this adds a further centrist addition to business rates which will have to be unpicked should the government continue with its aim of complete retention for local authorities from 2020.

Devolution got a look in. The government announced a memorandum of understanding with the Greater London Authority and London Councils over devolution of criminal justice and careers services with another to follow on health and care integration. It will also shortly ‘announce' its Midlands Engine strategy. The Barnett formula of course continues to provide extra funding for the devolved administrations

Interestingly the Budget belatedly also announced Green Paper of strategy over funding social care as part of its £2bn extra funding for social care and its commitment to helping those 24 local authorities apparently responsible for half of all delayed discharges because of lack of care available.

Overall, local government 'will be able to increase social care-specific resources in real terms in each of the remaining 3 years of the Parliament.'

There is more funding for schools – though check the small print- which includes 500 more free schools by 2020 but no major investment for the NHS other than previously announced. Any big changes are expected in the ‘real' Budget later this year. 

FINANCE

Regeneration: Developing devolution

By David Blackman | 13 May 2026

UK plans for fiscal devolution, announced by chancellor Rachel Reeves, could significantly reshape how city regions fund transport and regeneration projects....

FINANCE

Bill 'first step' in fiscal devolution era

By Dan Peters | 13 May 2026

The Overnight Visitor Levy Bill is the ‘first step in a new era of fiscal devolution in England’, the Government has said.

FINANCE

A calm place in the storm

By Ann McGauran | 13 May 2026

The new leader of England’s place directors, Katie Stewart, talks to Ann McGauran about the need for adaptability, resilience, and a broader basket of skills...

FINANCE

Committed to communities

By Heather Jameson | 13 May 2026

Sophie Broadfield, chief executive of Bath and North East Somerset Council, talks to Heather Jameson about her personal commitment to public service and purs...

Michael Burton

Popular articles by Michael Burton