The report shows that projected 3.4% per year average budget increases set out in the 2021 spending review have fallen – due to inflation and higher than anticipated pay awards – to 1.5%, which is unlikely to be enough to meet growing demands and deal with the aftermath of Covid in most services. At the same time long-term staff shortages are set to worsen due to below-inflation pay rises and the cost-of-living crisis. Institute for Government
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