Chancellor Rishi Sunak raised the minimum wage by just 19p and hours and the benefits by just 37p a week when he revealed devastating coronavirus projections – this shows the economy has shrunk its worst in 300 Years
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Rishi Sunak dealt a severe blow to poor workers and benefit recipients today when he warned: « Our economic emergency has only just begun. « .
The Chancellor raised the minimum wage by just 19p an hour in April and the benefits of 2 million people by 37p a week when he started paying for the pandemic.
Millions of public sector workers – all those who are over 24. Earning £ 000 and not working in the NHS – will freeze her salary for a year from April 2021.
Foreign aid is also suffering from a 4 billion cut. GBP as the Tories shatter their manifest promise to commit 0. 7% of GDP – spend 0 instead. 5%. And people across England are facing a staggering 5% tax hike next year.
Grim-faced, Mr. Sunak said, “At a time of unprecedented crisis, the government must make difficult decisions. He added: « Our health emergency is not over and our economic emergency has only just begun. «
The austerity measures come despite the top Tory pouring billions into the economy to pay the running costs of Covid-19.
He announced that the government now has $ 280 billion. GBP has pledged to reach the UK through coronavirus – and Covid funding for public services will be 55 billion in 2021/22. GBP.
This includes 18 billion. GBP for testing, PPE and vaccines next year, $ 3 billion. £ 2bn for the NHS. GBP for transportation, 3 billion. GBP for the councils, 250 million. GBP for sleep and GBP 2. 6 billion. for decentralized governments.
As a result, Britain’s borrowing is now the highest in peace history – but it won’t be enough to stop the worst blow to the economy in 300 years.
The Bureau of Budgetary Responsibility, the government’s watchdog, released apocalyptic predictions about the impact of the coronavirus.
They exposed that Britain’s borrowing is now the highest in the history of peace – 394 billion. GBP that year, £ 164 billion. GBP next year and 100bn. GBP or more for an additional three years.
That means the underlying debt will continue to climb to 97 each year. 5% of GDP by 2025/26. However, it will not be enough to stop the tide of unemployment.
Unemployment is set to rise to a high of 7. 5% or 2. 6 million people by the second quarter of 2021.
And the UK economy will have shrunk by 11 this year. 3% – the biggest drop in more than 300 years.
« Long-term scarring means the economy in 2025 will be around 3% smaller than expected in the March budget, » added Sunak.
The Chancellor has announced that the UK’s low-wage earners will receive a raise of just 19p an hour next year.
Employees with the « national living wage » – the minimum wage for people over 25 – receive a 2. 2% more, Rishi Sunak said, in a U-turn to the 49p an hour hoped for earlier this year.
In a silver lining, however, he said that from April the rate for over 25s will also apply to people 23 and over – as previously promised by the Tories.
This means 23 and 24 year olds are currently making £ 8. 20 an hour her salary will increase 71p to £ 8. 91.
The minimum wage, which applies to people aged 16 and over, will also rise from next spring.
The Chancellor recognized the worst fears of nearly 4 million workers by confirming that their wages would be frozen next April.
Briefing the country of the dire prospects for the UK economy, the Tory Chancellor tried to play division and domination with the frontline workers who kept Britain safe through the pandemic.
He acknowledged that while nurses, doctors and others in the NHS receive a raise, other public sector workers do not – unless their pay is below 24. 000 GBP.
The wage freeze includes teachers, armed forces, police, Whitehall officials, council and government officials.
Great Britain has 5. 5 million employees in the public sector, including just under 1. 8 million work in the NHS. Mr. Sunak said 2. 1 million public sector employees earn less than 24. £ 000 suggesting that up to 2 million remaining workers will receive a wage freeze in April.
Mr Sunak previously said the departments should show « restraint » and « maintain equality with the private sector » – where wages have fallen – to make sure things are « fair ». .
Yet millions of public sector workers are still recovering from seven years of wage freezes and caps under Tory’s austerity measures.
It is estimated that 38% of public sector employees are below the 24th threshold. Earn £ 000. Officials insisted that more than half will receive a raise based on performance and progressive wages. But Treasury sources couldn’t tell how many will see a wage freeze.
So-called « legacy » benefits as well as carer benefits and some other payments will only increase by 0. 5%, the latest CPI inflation figure for 2021/22.
That means an increase from just 37p a week to £ 74. 35 Standard rate of unemployment benefit or sickness and disability benefit, work and support benefit.
These services combined are used by around 2 million people, many of whom are sick or disabled. This includes some of the most vulnerable people in society.
The increase for children and under 25s is likely to be even smaller, and the separate care allowance is only expected to increase by 34p.
It comes even though the Universal Loan has increased by £ 20 this year and the State Pension has increased by £ 2. 5%.
The tiny spike is likely to alarm charities and activists – and widen the gap between « legacy » and universal credit.
The Universal Loan was increased by £ 20 per week in April 2020, but those with legacy benefits did not get such an increase.
There is a separate campaign for the government to keep the Universal Loan hike of £ 20 in April if it ends automatically.
Labor and Pensions Minister Therese Coffey said today that no decision has been made as to whether the £ 20 UC boost should be maintained.
The spending review confirmed £ 2. 9 billion. ‘Restart’ program for jobs executed by the DWP.
People who have been unemployed for more than 12 months receive « regular, intensive support with work that is tailored to their circumstances. «
Treasury Department Says Program Will « Help More Than One Million Unemployed Find Work ». .
But from the £ 2. 9 billion. , only 400 million. GBP will be available in 2021/22, the first of the three years. And hardly any further details are available.
There will also be £ 1. 4 billion. to fulfill existing commitments to double the number of work trainers in employment offices.
Millions of people in England face staggering tax increases from the Inflation Council in April.
Councils are free to increase the bills by up to 5%, despite wages and inflation falling during the pandemic.
Of the increases, 2% can go to general funds, 3% to financially troubled social welfare.
In addition to this core increase, Police Commissioners will be granted an additional £ 15 increase for a Band D house.
This means that local residents will help fill councils funding gaps despite the government’s Covid 3 billion. GBP provides.
The UK’s foreign aid budget is being temporarily cut to take billions of pounds off the world’s poorest countries.
The Chancellor confirmed plans to cut spending on foreign aid from zero. 7% to 0. 5% of national income – more than 4 billion. GBP.
That is in addition to £ 2. Reduction of expected spending by 9 billion. due to the lower GDP than in previous years.
Former Prime Ministers stood by the promise through thick and thin as a symbol of Britain’s gentle power, and Boris Johnson had claimed he would too.
He wrote in the 2019 Tory Manifesto: “We will proudly maintain our commitment to spend 0. 7% of GNI for development. ”
The Chancellor announced various improvements to the infrastructure, including £ 1. 6 billion. for local roads in 2021-22 to tackle potholes, bottlenecks and other improvements.
In addition to the spending review, the government should also publish its national infrastructure strategy with a comprehensive report on transport, housing and digital infrastructure.
And the Ministry of Finance’s « Green Paper » rules on value for money should be torn apart – with a stronger focus on « taking into account the regional impact of politics on places ». «
This means an offer to fulfill the promise to « increase » spending in the Midlands and North.
The government announced that it would publish the terms of the UK’s Shared Prosperity Fund, which will « aim to fund backward places and people in need, including cities, coastal communities and former industrial hubs » and replace existing funds from the EU. This will include £ 220 million over the next year.
Rishi Sunak said the government would publish a national infrastructure strategy, saying, « To fund our plans, I can announce that we will be creating a new UK infrastructure bank.
« The bank, headquartered in the north of England, will work with the private sector starting this spring to fund major new investment projects across the UK. «
He also announced a leveling up fund of 4 billion. GBP which municipalities can use to apply for projects such as a new bypass, train station modernization and more money.
Mr Sunak told MPs: « Projects have to have real impact, they have to be carried out within this Parliament and they have to have local support, including from their MP. «
School spending in England will run until 2022-23, but the IFS had proposed additional funding for « catching up ». .
NHS England already has an ongoing funding agreement that runs until 2023-24. But the Chancellor still announced 3 billion in the spending review. GBP for the NHS.
Of which £ 1. 5 billion. will address « existing pressures » in the NHS, 325 million. GBP will help replace older screening equipment for conditions like cancer and « hundreds of millions » will be used for mental health services.
1 billion. GBP will be spent tackling the coronavirus residue directly – on up to a million additional checks, scans and surgeries for those whose treatment has been delayed since March.
The transition period ends on 31. December and after only six weeks we still don’t have a trade agreement with the EU.
This will be a huge economic shock as customs duties and papers are incurred at the border, in ports like Dover, and on billions of everyday goods.
The Chancellor announced an additional £ 220 million for borders and immigration to help increase her workload – on top of around £ 8 billion to prepare for Brexit.
The money would also be used for new technologies to « streamline the frontier experience and strengthen security ». .
This could mean more automatic passport gates, fingerprint or eye scan data and « analytics » to track people through the system.
The Department of Defense, which has a 14 billion black hole. GBP faced was exempted from spending review and received a four-year fee of GBP 16. 5 billion. deal.
It will enable investment in AI, cyber warfare, and a new « space command » – though some obsolete equipment will have to be thrown away.
The actual Integrated Review was not presented as part of the Spend Review, but it is a useful comparison with other areas that are less generous.
The aim is to bring the police, secret services and criminal justice together in a « state-of-the-art facility » in London.
Details, including the final budget and location, are little known, but the Treasury Department claims it will be operational by 2026.
The Ministry of Finance promised an increase in funding of 275 million. GBP to add court capacity after pandemic left behind.
Funding will also « help the system to bring more criminals to justice, » though the details are somewhat narrow.
There will also be £ 40m for victims and support services, of which £ 25m is new money, the Treasury Department said.
The Treasury Department said there will be a £ 151 million package to help rough sleepers off the streets in 2021-22.
The money will be used to fund the Rough Sleeping Initiative, which supports the homeless and their local councils.
Officials claim this is a 60% increase in funding compared to what was announced in 2019.
The Ministry of Finance confirmed 29 million. GBP to fund the UK Festival in 2022. Officials described this as « a series of breathtaking events to showcase the best of British art, culture and technology » to « strengthen national pride and celebrate what it means to be British ». .
Theresa May revealed the plan in 2018 when it was dubbed the « Festival of Brexit Britain ». .
For the platinum anniversary celebration of the Queen over a four-day weekend in 2022, 5 million. GBP provided. And £ 118 million will go to the Commonwealth Games, which are due to take place in Birmingham in the summer of 2022.
Mr Sunak said all UK domestic funding will be « at least equal to EU revenues » while the « core health budget » will grow by £ 6. 6 billion next year.
He also said the settlement will allow local authorities to increase their « nuclear spending power » by 4. 5% « , noting: » Local authorities will have additional flexibility in terms of council tax and adult social security requirements – along with 300 million. GBP in new grants gives them access to an additional GBP billion to fund social welfare.
« This is on top of the additional £ 1 billion Social Security grant that we have provided this year. I can confirm that it will be held until next year. «
The Chancellor said the Barnett formula will increase the Scottish Government’s budget by £ 2. 4 billion and Welsh government funded for £ 1. 3 billion, with £ 0. 9 billion for the Northern Irish executive.
Rishi Sunak, Spending Review, United Kingdom
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