Labour adds education to protected departments, adding to squeeze on transport

Labour today commits to protecting the entire education budget, adding to the squeeze on transport budgets in the next Parliament. 

The party said that early years, schools and post-16 education and skills must all be protected from spending reductions. Labour has joined other parties in making the NHS the focus for spending increases, whilst at the same time reducing the deficit through cutting other departments and through some tax rises.

The Institute of Fiscal Studies has highlighted how protecting some departments from cuts will mean even bigger reductions for other departments such as transport. Protecting only the schools part of the education budget, health and overseas aid would double the average cut for other departments outlined by the Chancellor to a 42% cut in the ten years to 2020.

Whilst Labour - and the Lib Dems - would need to impose lower departmental spending cuts overall - 1.4% (£5.2bn) and 2.1% (£7.9bn) respectively - compared to the 14% (£51bn) planned by the Conservatives, any real-terms spending increases for some departments would still increase the pain for unprotected departments.

All the parties are planning to unveil their manifestos next week, before postal voting starts.

Meanwhile, the SNP, which says it wants "modest spending increases," said it would seek fiscal autonomy for Scotland - which Labour was reported as saying would leave the country with a £7.6bn blackhole.