Report

Capital spending in public services: fixing how the government invests in the NHS, schools and prisons

Think tank: Institute for Government

Author(s): Thomas Pope; Gemma Tetlow; Jeremy Pattison

June 26, 2024

This report from UK think tank the Institute for Government reveals the impact of the UK’s historically low – and badly spent – capital budgets.

Crumbling buildings, creaking IT and a lack of equipment will continue to seriously hamper public service performance unless the next government takes a new approach to capital spending.

This report, published with Grant Thornton UK LLP, reveals the impact of the UK’s historically low – and badly spent – capital budgets on the Department of Health and Social Care, Department for Education and Ministry of Justice.

Decisions since 2010 – which saw capital budgets in DHSC, DfE and MoJ down 18%, 17% and 69% respectively in 2015/16 relative to 2007/08 in real terms, with capital spending for education still 17% lower – have led to patients languishing on waiting lists, prisoners kept in over-crowded cells and some pupils being taught in poor conditions.