Government faces funding "trade off"

Tuesday, 9 March 2004 12:00 AM

Gordon Brown could be forced to squeeze the education budget later this year in order to meet the government's commitment to spending on health and transport.

A report from the left-leaning think tank, the Institute for Public Policy Research (ippr), has warned that the chancellor will face a tough task balancing the competing demands on the Treasury's coffers.

The ippr believes this summer's spending review will provide an insight into the government's key objectives for a third term in power.

"Even if things work out as the Treasury hopes, the 2004 review will still have to address difficult trade-offs," said senior ippr economist Peter Robinson. "The period where public services other than health might look forward to enjoying a significantly higher proportion of the nation's resources is at an end."

"The education budget cannot be allowed to rise if the government is to continue to make progress on their child poverty targets and to avoid slashing the transport budget."

The news will come as a blow to education secretary Charles Clarke, who will face pressure from the unions ahead of next year's Budget to secure additional funding to address issues such as teacher workload.

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