Policy

HM Treasury’s Spending Review 2025

Chris Bryce

FCSA has submitted its response to HM Treasury’s Spending Review 2025. FCSA’s primary interests in this spending review relate to: ensuring enforcement bodies and the legal system are properly resourced, protecting tax revenues, and encouraging Government to identify and make efficiency savings.

We strongly support the creation of the Fair Work Agency (FWA) and welcome the Government’s clear statement that the merging of the separate bodies is not merely a money-saving exercise, and that further funding will be made available. Enforcing the existing rules is the most effective way of disrupting non-compliant operators. The effective targeting of those extra resources will be crucial.

Some areas are currently significantly under-funded, most notably the Employment Tribunal Service which currently has serious backlogs. These backlogs potentially stand to increase substantially as a direct result of the provisions of the Employment Rights Bill.

It is important that where a government policy increases demand on resources, that adequate additional resources are also provided. This inevitably means that efficiency savings in other areas of Government will need to be found because it is not sustainable to continue to increase taxation.

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