On Monday, the Prime Minister set out the measures we must take by the beginning of December to control the spread of the coronavirus.
Vacation program, self-employed support, loans, grants, tax cuts and deferrals, and additional funding for schools, councils, NHS, charities, culture and sports.
Next year we will initially provide 18 billion to finance our programs for tests, PPE and vaccines. GBP available.
3 billion. GBP to help restore the NHS so that up to a million reviews, scans and surgeries can be performed.
And while a lot of our coronavirus responses are across the UK, the government is also providing £ 2. 6 billion to support decentralized administrations in Scotland, Wales and Northern Ireland.
And can I thank the new chairman Richard Hughes and his entire team for their work?.
The OBR forecast that the economy will shrink by 11 this year. 3%, the largest drop in production in over 300 years.
As the restrictions are eased, they expect the economy to recover around 5. 5% next year, 6. 6% in 2022, then 2. 3%, 1. 7% and 1. 8% in the following years.
Even if growth does return, our economic performance is not expected to return to pre-crisis levels until the fourth quarter of 2022.
Long-term scarring means the economy will be about 3% smaller in 2025 than expected in the March budget.
The economic impact of the coronavirus and the actions we have taken in response mean that our borrowing and debt has increased significantly but necessary.
The United Kingdom is expected to have total loans of 394 billion this year. Absorb GBP, which is 19% of GDP.
Borrowing will drop to 164 billion next year. GBP, 2022-23 to 105 billion. GBP, and remains at around 100 billion for the rest of the forecast. GBP, 4% of GDP.
The underlying debt is estimated at 91 after the temporary effects of the Bank of England asset purchases are removed. 9% of GDP this year.
With increased borrowing and a projected persistent deficit, underlying debt is expected to continue to rise to 97 each year. 5% of GDP in 2025-26.
We could only act as we did because we got into this crisis with strong public finances.
And we have a responsibility to return to sustainable fiscal positions once the economy has recovered.
That is why we have taken, and continue to take, exceptional measures to protect people’s jobs and incomes.
The OBR is now declaring, as the Bank of England and the IMF have already done, that our economic response has protected jobs, supported incomes and helped companies stay afloat.
And the latest data shows that the UK unemployment rate is lower than Italy, France, Spain, Canada and the US.
I am announcing nearly £ 3 billion today for My Right Honorable Friend the Work. & Pension Secretary to launch a new three year restart program to help over a million people who have been unemployed for over a year find new jobs.
Despite the tremendous support we have given, the OBR expects unemployment to rise from 7 to a peak in the second quarter of next year. 5% – 2nd. 6 million people.
Unemployment is then projected to decrease to 4 each year. 4% by the end of 2024.
Today’s statistics remind us of something else: the coronavirus has deepened the gap between public and private sector wages.
In the six months to September, private sector wages fell almost 1% year over year. Public sector wages rose by almost 4% over the same period.
And unlike private sector workers who have lost jobs, have had vacation, wages have been cut and working hours have been cut, the public sector has not.
In such a difficult context for the private sector – especially those who work in sectors such as retail, hospitality and recreation – I cannot justify a significant general wage increase for all public sector workers.
To protect public sector jobs during this time of crisis and to ensure fairness between the public and private sectors, I am taking three steps today.
First, we will provide a raise for over a million nurses, doctors and others working in the NHS, taking into account the recommendations of the payroll inspectors.
Second, in order to protect jobs, pay rises in the rest of the public sector will be suspended next year.
The 2. 1 million public sector employees below the 24th average wage. Earning £ 000 is guaranteed a minimum raise of £ 250.
This means, Speaker, that the majority of public sector workers will see their wages rise over the next year while the government makes the difficult decision to control public sector wages.
We fully accept the recommendations of the Low Wage Commission to increase the national living wage by 2. 2% up to £ 8. 91 per hour; to extend this rate to persons aged 23 and over; and also to raise national minimum wage rates.
A full time National Living Wage employee will increase their annual income by £ 345 annually for the next year.
And compared to 2016, when the directive was first introduced, that means a wage increase of over 4. 000 GBP.
These are difficult and uncertain economic times. It is therefore right that our immediate priority is to protect people’s health and their jobs.
Before I go into the details, I would like to thank the entire Treasury team, and especially My Right Honorable Friend, the Chief Secretary, for their dedication and hard work in preparing for today’s expense review.
This year and next, the daily department spending will increase by 3 in real terms. 8% – the fastest growth rate in 15 years.
With the Barnett formula, today’s decisions add £ 2 to the Scottish Government’s resources. 4 billion, £ 1 funding from the Welsh Government. 3 billion and £ 0. 9 billion for the Northern Irish executive.
The UK as a whole will benefit from the UK Shared Prosperity Fund and over time we will increase funding so that total UK domestic funding is at least equal to EU revenue, averaging around £ 1. 5 billion a year.
In order to help local areas prepare for the introduction of the UKSPF, we will provide funding for communities over the next year to develop pilot programs and new approaches.
And we will accelerate four City and Growth Accords in Scotland, helping Tay Cities, Borderlands, Moray and the Scottish Isles create jobs and wealth in their areas.
Next year the core health budget will grow by £ 6. 6 billion, which makes us 50. 000 more nurses and 50 million more general practitioner appointments.
And fund the largest hospital building program of a generation – building 40 new hospitals and modernizing 70 more.
Local authorities will have additional flexibility with regard to the Council’s tax and social welfare rules, which will be given to them along with new grants of 300 million. Provide GBP access to an additional £ billion to fund social welfare.
And this is on top of the additional £ 1 billion welfare subsidy that we have allocated this year that I can confirm will be maintained for the next year.
In order to give our children a better education, we are also continuing our three-year investment plan for schools.
We will increase the school budget by £ 2 next year. 2 billion on track to meet our £ 7 additional pledge. 1 billion by 2022-23.
We are providing more than £ 400 million for the recruitment of 6. 000 new police officers ready – on the right track, 20. 000 to recruit.
New hospitals, better schools, safer roads – the priorities of the British people are this government’s priorities.
This country has always been and always will be open and outward looking, leading to the solution of the world’s most difficult problems.
But during a domestic fiscal emergency when we need to prioritize our limited resources for jobs and public services, we stick strictly to spending 0. 7% of our national foreign aid income is hard to justify for the British people, especially when we have the highest peacetime borrowing.
I have listened with great respect to those who have worked passionately to maintain this goal.
Print the equivalent of 0. 5% of our national income for foreign aid in 2021, 10 billion. GBP for this expense review.
According to the latest OECD data, the UK would remain the second largest development aid donor in the G7.
And 0. 5% is also significantly more than the 29 countries on the OECD Development Assistance Committee – on average only 0. 38%.
And foreign aid is, of course, just one of the ways we play our role in the world.
The Prime Minister has announced that he will invest more than £ 24 billion in defense over the next four years. This is the largest sustained increase in 30 years.
We are investing more in our extensive diplomatic network, which is already one of the largest in the world.
However, we should not only measure our standing in the world by the money we spend, but also by the causes that drive us forward and the values we defend.
Investments in the next year will amount to 100 billion. GBP amount – 27 billion in real terms. GBP more than last year.
To fund our plans, I can also announce that we will be launching a new UK infrastructure bank.
Headquartered in the north of England, the bank will be working with the private sector starting this spring to fund major new investment projects across the UK.
For many people, the strongest barometer of economic success is the change they see and the pride they feel in the places they call home.
People want to look around their towns and villages and be able to say: Yes, our community – this place – is better off than five years ago.
The fund is administered jointly between the Ministry of Finance, the Ministry of Transport and the Ministry of Housing, Municipalities and Local Government. A new, holistic, location-based approach to the needs of local areas is being pursued.
They are evidence of our commitment to making a better nation, but they are not enough to make one.
When asked what our vision is for the future of this country, we cannot point to a shopping list with announcements and feel the job is done.
As we invest billions in research and development, we’re also introducing a new immigration system that ensures the best and brightest from around the world come here to learn, innovate, and create.
As we invest billions in building new homes, we are also simplifying our planning system to ensure beautiful homes are built where they are most needed.
When we invest billions in the security of this country, we are also defending freedom of speech and democratic rule and proving that our values are more than just words.
And as we invest billions in public services, we also protect the wages of the lowest incomes and support jobs as good work remains the most rewarding and sustainable route to prosperity.
The spending review announced today will enable us to address the essential government issues. It is a clear statement of our priorities, but promoting the individual and community brilliance on which a prosperous society depends remains a job, as always, unfinished.
We in government can lead the way, better schools, more houses, stronger defenses, safer roads, green energy, technological development, improved railways, improved roads, all investments that create jobs and opportunities for everyone in this country give themselves to meet their potential.
But it is the individual, the family and the community that must become stronger, healthier and happier as a result.
These are the incalculable but essential parts of our future, and they cannot be mandated or distributed by the government.
These things must come from each of us and be freely shared because the future, this better country, is a shared endeavor.
Today the government financed the priorities of the British people and now the task of implementing them begins.
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Expenditure Review, Treasury Department, Rishi Sunak, Government, Chancellor of the Exchequer
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