+++ Spending Review Live +++

Where we’re at, and forecasts:

  • £280bn to get the country through Coronavirus this year
  • £18bn earmarked initially for Covid response next year, plus £3bn for NHS recover, £2bn for transport and £3bn to local councils, £250m to help end rough sleeping
  • £2.6bn to support devolved administrations.
  • Next year public services funding to cope with Covid will total £55bn
  • OBR: Economy to contract 11.3% this year; growing:
    • 5.5% – 2021
    • 6.6% – 2022
    • 2.3% – 2023
    • 1.7% – 2024
    • 1.8% – 2025
  • Economy will be permanently smaller by 3% in 2025
  • UK forecast to borrow £394bn this year; 19% of GDP
    • Falling to £100bn – 4% of GDP – for the end of the OBR forecast
  • Business insolvencies have fallen
  • Unemployment remains lower than in Italy, France, Spain, Canada and the USA
  • £3.5bn for DWP to help those unemployed for over a year find new work
  • OBR expect 7.5% unemployment by next year, falling to 4% by the end of 2024

Public sector wages

  • private-sector workers’ wages fell by nearly 1% up to September, whereas public sector rose by almost 4%
  • “I cannot justify a significant across the board pay increase across the sector, instead we are targeting” support”
  • Majority of public sector workers will get a pay rise
    1. Nurses, doctors and NHS workers WILL get a pay rise
    2. Pay rises in the rest of the public sector will be paused next year
    3. 2.1million public sector workers below £24,000 will be guaranteed a pay rise of at least £250
  • Minimum wage will rise as will the National Living Wage

Departments

  • Day to day departmental spending will rise next year by 3.8%. An increase of £14.8 billion.
  • Core health budget will grow next year by £6.6bn
  • Criminal justice funding will increase by £1bn next year, £4bn over four years to provide new prison spaces
  • UK infrastructure bank based up north

Foreign aid

  • 0.7% “difficult to justify to the British people”
  • Cut to 0.5%, with an aim to return to 0.7% when next possible

£4bn levelling up fund

  • Any local area will be able to bid directly to fund local projects
  • Administered between Treasury, DfT and Local Government
  • The projects must command local support and from the MP

 

mdi-account-multiple-outline Rishi Sunak
mdi-timer November 25 2020 @ 12:47 mdi-share-variant mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-printer
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