We have published a summary of the key announcements in the Chancellor’s Spending Review yesterday. Despite speculation and a stark forecast from the Office for Budget Responsibility (OBR), Mr Sunak made no announcements about tax increases. His main focus was spending to boost the economy, support jobs and businesses, and invest in infrastructure.
The OBR reported that the UK economy is expected to shrink by 11.3% in 2020 – the largest annual fall since the Great Frost of 1709 – and total borrowing in 2020/21 will reach an estimated £394 billion. This is, of course, due to the pandemic support measures and includes additional public services spending of an extra £38 billion over the rest of 2020/21. Total spending on the response to Covid-19 this year will come to over £280 billion.
Looking ahead, Mr Sunak outlined a raft of fresh support spending, including capital investment in 2021/22 of £100 billion and a new employment support fund of £2.9 billion over three years for the long-term unemployed.
Other key measures include:
We hope you find our summary useful and of interest.
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