Kwasi Kwarteng will NOT cut spending on schools, NHS or police to pay for tax cuts – but inflation WILL squeeze budgets

THE NHS and schools face a funding squeeze under Kwasi Kwarteng’s plan to wrestle down Britain’s huge debt pile.

The Chancellor has vowed not to slash cash spending on vital public services – but soaring inflation means they risk real term cuts.

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Mr Kwarteng is expected to hike Whitehall budgets slightly but not enough to match crippling price rises.

In 2021 then-Chancellor Rishi Sunak put together a Spending Review, a document detailing how much cash each department gets.

With inflation sitting at a whopping 9.9 per cent, the cost of running schools, hospitals and the police is more expensive than when budgets were set.

And with no more money coming in, it means a real term cut to important public services.

This morning Tory MPs blasted Mr Kwarteng for the way he’s handling the economy.

In response to last week’s tax slashing announcements, the pound yesterday dipped as low as 1.03 against the dollar.

It was the worst day for Britain’s currency since 1971.

Some Tories recalled warnings from Mr Sunak during the Tory race to be PM that Liz Truss’s plans for the economy would lead to chaos.  

Committee chair Huw Merriman blasted: “Those of us who backed Rishi Sunak lost the contest but this poll suggests that the victor is losing our voters with policies we warned against.

“For the good of our country, and the livelihoods of everyone in our country, I still hope to be proven wrong.”

Joining in the wrath, former Chancellor George Osborne said: “Odd to see free marketeers urging a free market government to ignore the markets”.

The Chancellor will map out his blueprint to reduce massive levels of borrowing with a “Medium Term Fiscal Plan” on November 23.

Separate changes to immigration rules to allow foreign workers to plug the staff shortage will be unveiled around late October.

The Chancellor spooked financial markets after announcing the biggest tax giveaway since 1972 at last week’s “mini-Budget”.

His £45billion relief package – on top of a £60billion energy scheme – set trader nerves jangling and sparked a run on the pound.

This post first appeared on thesun.co.uk