Public sector pay restraint – a stealth funding cut for colleges?

There was not much in today's Autumn Statement specifically for colleges. The new shared services VAT exemption may interest some although they may be put off by the tight conditions of HMRC and the inherent wariness of colleagues. One area of both uncertainty and relevance to colleges is "public sector pay restraint".

The Policy Costings issued with the Statement note:

Public sector pay awards will average one per cent for each of the two years following the end of the pay freeze. Departmental budgets will be adjusted in line with the policy, with the exception of health and schools, where savings will be recycled. The principal impact of the measure will therefore be to reduce public expenditure, through reduced departmental resource spending.

Does that mean that DFE and BIS expenditure for colleges will be "adjusted" down in line with pay restraint?