Chancellor, Sajid Javid is poised to deliver the Autumn Budget (date still to be announced) within weeks as Brexit draws closer to its October 31st deadline.
He delivered the Spending Round early in September with bold plans to rejuvenate the fortunes of the United Kingdom economy and our overall welfare and quality of life.
The Spending Round sets out the Government’s spending plans for 2020-21 and funds the people’s priorities, including: high quality and readily accessible healthcare, schools and colleges that deliver superb education, and reducing crime and ensuring the safety of us all.
It also provides some financial certainty for government departments and devolved administrations to focus on delivering Brexit on October 31st. A full multi-year spending review will be delivered in 2020, which will depend on the Brexit outcome.
Since 2010 the government has reduced its borrowing to 1.1% of Gross Domestic Product (GDP), which enables the government to spend more on the UK’s public services in a more sustainable way.
Fiscal rules dictate that the structural deficit stays below 2% of GDP in 2020-21 and ensuring debt continues to fall as a % of GDP. This helps to ensure the public finances are sustainable and the government retains the capacity to respond to global economic challenges.
As with all spending plans and priorities, difficult choices need to be made as to where the spending is needed the most and where it can provide the greatest benefit to the people.
On a positive note, this is the first year since 2002 that no department has faced a cut to its day-to-day budget.
The Spending Round marks a new focus on the positive outcomes the government plans to deliver, which will be further developed in the Spending Review in 2020.
During the Conservatory Party Conference, we heard of the plans to inject extra cash into hospitals, schools and the police as well as plans to raise the national minimum wage for adult workers to £10.50 per hour by 2024.
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The Chancellor also announced he will lower the age threshold for those who qualify from 25 to 21.
Other funding pledges included £25bn for road projects and £5bn for digital infrastructure.
The detailed Spending Round document can be read online at www.gov.uk
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