Capital spending outside defence has lost more than £5bn since the March forecast, according to analysis by the Resolution Foundation. The think tank's figures put a size on the capital cuts set out in the Budget document.
The Treasury confirmed that departmental capital budgets will be cut by a further 1% a year from 2027-28 to 2029-30. The cut is to raise £3bn towards the gap in the Defence Investment Plan.
The Resolution Foundation says departmental capital spending is now set to fall to 4.1% of GDP in 2029-30. The March forecast put it at 4.3%.
Excluding defence, it says capital spending has lost over £5bn since March. It is now planned below its 2023-24 level. This means the squeeze on investment falls on departments other than defence.