Chancellor Rishi Sunak has set out government spending plans and latest economic forecasts.
Here are the main points:
£18bn allocated to testing, PPE and vaccines next year and £3bn for the NHS plus over £2bn to keep transport arteries open, more than £3bn to local authorities and £250m to help end rough sleeping
Altogether public services funding to tackle coronavirus next year will be £55bn
- This year a total of £280bn provided “to get our country through coronavirus”
- The OBR expects GDP to shrink by 11.3% this year, the biggest decline in more than 300 years
- GDP expected to grow by 5.5% in 2021 but will not recover to pre-crisis levels until the fourth quarter of 2022
- Borrowing is expected to reach £394bn for the current fiscal year, or 19% of GDP – the highest recorded level of borrowing in peacetime
- The chancellor confirms £3bn for a three-year Restart programme to help a million people who have been unemployed for over a year to find jobs
- Unemployment is expected to peak at 7.5% in the second quarter of next year
- Pay rises for over a million nurses, doctors and others working in the NHS but pay rises “paused” for the rest of the public sector next year
- However the 2.1 million public sector workers earning less than £24,000 will receive a rise of at least £250 – and this means the majority of public employees will see their pay increase in 2021
- The national living wage will rise by 2.2% to £8.91 per hour and extended to those aged 23 and over. For a full-time worker on the national living wage, that’s an increase of £345 next year. National minimum wage will also increase.
- Over this year and next, departmental spending will rise in real terms by 3.8%, the the fastest growth rate in 15 years
- There’s £2.4bn more for Scotland, £1.3bn for Wales and £900m for Northern Ireland
- Core health budget rises by £6.6bn next year, allowing the government to deliver 50,000 more nurses and 50 million more GP appointments, Mr Sunak said
- There will also be a £2.3bn increase in capital investments in the NHS – to replace old MRI and CT scanners and fund a promised hospital building programme
- Schools budget to increase by £2.2bn next year and a £291m boost for further education plus £1.5bn to rebuild colleges and £375m to deliver the PM’s lifetime skills guarantee
- £400m to recruit 6,000 new police officers and £4bn over four years for 18,000 new prison places
- Spending 0.7% of national income on overseas aid is “difficult to justify” and at a time of “unprecedented crisis”: it is being cut to 0.5% in 2021 but with the intention to return to 0.7% when the fiscal situation allows
- Capital spending next year will total £100bn, £27bn more than last year in real terms
- £7.1bn national home building fund
- A new national infrastructure bank, headquartered in the north of England, will work with the private sector to finance major new investment projects across the UK, starting in the spring
- Local authorities to be given extra flexibility to raise council tax which – together with an extra £300m grant from Whitehall – will give them an extra £1bn to spend on social care
- “Levelling up” fund worth £4bn to pay for local projects with “real impact” – such as bypasses, railway station upgrades, traffic reduction, libraries, museums and galleries as well as high street and town centre improvements.
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