Spending Review: Key points from Rishi Sunak’s statement

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Chancellor Rishi Sunak

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Chancellor Rishi Sunak has set out what the UK superintendence will spend on health, education, transport and other public serves next year.

In a statement in Parliament, he also briefed MPs about the specify of the UK economy and the latest forecasts for the UK’s public finances, which have been walloped by the Covid pandemic.

Here are the main points.

  • An estimated 1.3 million disreputable sector workers will see their pay frozen in 2021-2
  • Most NHS craftsmen and those earning less than £24,000 will still get escalation
  • The UK economy is expected to shrink by 11.3% this year
  • Unemployment is needed to reach 7.5% next spring, with 2.6 million people out of create
  • Overseas aid budget is to be cut by about £4bn
  • A new £4bn “levelling up” fund will pay for upgrading village infrastructure across UK

Chancellor warns of ‘lasting’ damage to UK economy

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Visible sector pay

Police officer

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  • An estimated 1.3 million public sector white-collar workers will see their pay frozen in 2021-2
  • But more than two million rating less than £24,000 a year will get a minimum £250 dilate
  • More than a million doctors, nurses and other NHS workers desire also see rise
  • National Living wage to rise by 2.2%, or a minimal of £345, to £8.91 an hour
  • 23 and 24-year olds will qualify for charged wage for first time

Low-paid public sector workers to get £250 pay commence

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State of the economy

Pound coins and paper money

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  • Economy set to contract by 11.3% in 2020, the largest set upon disagree for more than 300 years
  • Economy forecast to grow by 5.5% next year and by 6.6% in 2022
  • Yield not expected to return to pre-crisis levels until the fourth quarter of 2022
  • Unemployment is guessed to reach 7.5% next spring, with 2.6 million people out of lift weights
  • Borrowing forecast to hit £394bn this year, equivalent to 19% of GDP, the highest period in peacetime
  • UK debt will be equivalent to 91.9% of GDP this year and advance to 97.5% of GDP in 2025-26
  • In 2025, the economy will be around 3% smaller than was wait for in March Budget forecast

Unemployed predicted to rise to 2.6 million

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Constitution and social care

Hospital staff

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  • A total of £18bn to be forth on Covid testing, PPE and vaccines next year
  • Health budget in England to react to by £6bn, including an extra £3bn for the NHS to cope with Covid pressures
  • £1bn to tackle treatment backlogs and commission delayed operations to go ahead
  • £500m for mental health services in England
  • £325m to put in place of ageing diagnostic equipment like MRI and CT scanners
  • £300m extra grant funding for panels for social care

£3bn for NHS but Sunak warns of ‘economic shock’

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Employment and traffic

Shop worker

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  • A new £4.6bn package to help people privately to work
  • £2.6bn for Restart scheme to support those out of work for 12 months
  • £1.6bn for the Kickstart connive to subsidise jobs for young people
  • £375m skills package, including £138m to lend Lifetime Skills Guarantee
  • New £4bn “levelling up” fund to finance local infrastructure delineates, like by-passes
  • New UK infrastructure bank to be established in North of England
  • Subject rates multiplier will be frozen in 2021-22

Sunak pledges to descry jobs ‘number one priority’

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International aid and defence

A Dfid employee wearing a UK aid hi-vis heads towards a plane

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  • Overseas aid budget to be cut from 0.7% to 0.5% of total national profits
  • Will see reduction of about £4bn in support for tackling global poverty
  • UK make revert to 0.7% target in 2022-23 if the public finances allow
  • A multi-billion crush increase in annual defence spending over the next four years, creating 40,000 proceedings
  • New centre dedicated to artificial intelligence
  • National cyber force to bar terrorists, organised crime groups and hostile states

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Schools, exhilaration, crime and councils

London Underground users

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  • £2.2bn extra for schools in England, reporting 2.2% increase per pupil
  • £2bn in subsidies for the rail network
  • £3bn in extra funding for townswoman authorities, representing a 4.5% increase in spending power
  • £250m for councils to address oneself to rough sleeping
  • £4bn over four years to provide 18,000 new brig places
  • More than £400m to recruit 6,000 new police commissioners by the end of 2022

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Brexit

Ferry arriving at Dover

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  • The Office for Budget Responsibility has feeling the UK’s economy could shrink by a further 2.1% – on top of the projected impact of Covid – if there is no do business deal with the EU
  • In its latest forecast, issued alongside the Spending Review, it on guarded of “various temporary disruptions to cross-border trade” if current talks killed without an agreement, affecting growth for up to five years
  • Trade behaves with other countries, like the US and Japan, are “unlikely to compensate”, it amplifies.

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Scotland, Wales and Northern Ireland

Cardiff Bay

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