Public spending review delay proposed

The Treasury is examining the feasibility of postponing next year’s public
spending review until 2007.

This will force government departments to stick to their current expenditure
plans for another year.

According to the Financial Times, this raises the possibility of
faster public expenditure growth and higher taxes towards the end of this

The decision has not been made yet, but departments including health and
education are reportedly concerned that the next round could be among the
tightest for many years.

Tony Blair is anxious not to alienate middle England, and according to the
FT has said privately that current expenditure projections are at the
maximum that is politically sustainable.

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