NEW PODCAST: The end of the peace dividend? UK defence in a changing world

🎧 @helenmiller.bsky.social, @maxwarner.bsky.social & @rusi.bsky.social's Matthew Savill chat all things defence spending: what it covers, how it's changed and what reaching 3.5% of GDP would mean: ifs.org.uk/articles/end...

Much more detail on defence in our new report, in which we explore the past and future of defence spending - in the UK and elsewhere - and discuss the links between spending and capabilities, as well as between defence spending and growth: ifs.org.uk/publications...

In new @theifs.bsky.social work, we examine the fiscal challenge of the UK's commitment to higher defence spending. If met, for the first time in a long time health and defence spending would likely rise simultaneously (as a % of GDP). This would change the shape and/or size of the state.

Some great charts in this report. This one is my favourite. The UK has signed up the new NATO commitment to spend 3.5% of GDP on defence. The scale of the increase is fiscally challenging, and we've given ourselves a decade. Poland, on the other hand, has done it in just two years.

NEW: A response to government commitment to spend 5% of GDP on national security

@beeboileau.bsky.social‬ and @maxwarner.bsky.social‬ set out what this could mean for government spending and future fiscal events: ifs.org.uk/articles/res...

Wrote pre-SR in the @observeruk.bsky.social about the pressures on defence spending & the risk that existing plans - which were confirmed at the SR - will need to be topped up in future: observer.co.uk/news/busines...

The govt's allocation of additional investment over this parliament is a good guide to its overall priorities - we're seeing big increases to defence and net zero, with less for more primarily growth-friendly areas (incl a real-terms cut to transport capital over the parliament)

🚨 OUT NOW 🚨 How do spending reviews work?

💷 Tory MP John Glen, former minister Brandon Lewis, former special adviser Sonia Khan and economists @tompope.bsky.social‬ & @beeboileau.bsky.social join @alaintolhurst.bsky.social to look behind the Treasury's spending plans

🎧 Listen here: pod.fo/e/2e0742

NEW: Four big decisions for the 2025 Spending Review

@beeboileau.bsky.social, @maxwarner.bsky.social and @benzaranko.bsky.social explain why tough choices will be unavoidable at the upcoming Spending Review in our new briefing:

Lots of discussion today about regional investment. You can use our @theifs.bsky.social public spending tool to explore how much the government currently spends in each region of the UK, what it spends it on, and how that has changed over time: ifs.org.uk/calculators/...

EVENT: A look ahead to the 2025 Spending Review

Join us at 11am on Monday 2 June for analysis of the key choices at next month's Spending Review, with speakers @beeboileau.bsky.social and @instituteforgovernment.org.uk's @stuarthoddinott.bsky.social.

Sign up here: ifs.org.uk/events/look-...

Rather than doom-scrolling/trying to desperately learn what a ‘Treasury basis trade’ is, why not play with our new tool instead?

Allows you to see, in lots of detail, how much the government spends on different things in each region (£, £ per person, % GDP). I’ll post some nice examples later.

Not planning to combine the two (at least currently!!) but there is an update of the 'be the chancellor' tool coming - watch this space. Should be out pre-Spending Review

We've written a comment alongside the tool, here: ifs.org.uk/articles/exp.... This gives another example of how you can use the tool, pulling out the strong regional differences in spending. And Max goes over some more examples here: bsky.app/profile/maxw...

4️⃣: you can break down total spending, or a category of spending, into its components, either UK-wide or in a certain region/nation (as well as splitting by 'current' or 'capital' spend)

e.g. here's how benefits, state pension, and social service spending looked overall in 2023-24:

3️⃣: you can look at how spending on different things, or in different areas, has changed over time. You can 'index' to different years.

e.g. here's how real-terms per-person spending on health, education, and benefits, pensions, and social services looks compared to 2009-10:

2️⃣: you can compare levels of spending on different things between two regions or nations of the UK.

e.g. here's how London compares to the England-wide average in per-person spending on different types of benefits, state pension, and social services:

1️⃣: you can see the distribution of (relatively granular) types of spending across the UK. You can compare this spending to different denominators – to the population, regional GDP, etc.

e.g. here are sickness & disability benefits as a share of each region's GDP:

We've built a new IFS tool which can be used to explore what the government spends money on, and where in the UK benefits from that spending. Here it is: ifs.org.uk/calculators/.... Short thread on what you can do with the tool:

The evidence report is here: ifs.org.uk/publications...

The policy report is here: ifs.org.uk/publications...

We’ve written two new reports on the decisions people face when drawing on private pension wealth in retirement & policy reforms that might help improve these decisions. Important to get this right as defined contribution pensions get more important & can now be accessed flexibly. Thread below:

Link to sign up here: ifs.org.uk/events/how-c...

Looking forward to speaking at this event tomorrow morning on the challenges faced by people managing their pension wealth in retirement.

Do come along for some discussion of what one Nobel Prize-winning economist called 'the nastiest, hardest problem in finance' (!)

NEW: A look ahead to the Spring Forecast

@beeboileau.bsky.social, Carl Emmerson, @matthewoulton.bsky.social, Isabel Stockton & @benzaranko.bsky.social look at the Chancellor’s options in the upcoming Spring Forecast:

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