Spending Review – 25 November 2020
- No tax announcements, although the Chancellor noted that “we have a responsibility … to return to a sustainable fiscal position”.
- Government borrowing projected to be £394 billion in 2020/21 before stabilising at around £100 billion from 2023/24 onwards. Total debt to remain over 100% of GDP.
- The Office for Budget Responsibility (OBR) says that “a fiscal adjustment of £27 billion” will be needed as a minimum in the medium term.
- New UK Infrastructure Bank to be established in the north of England to start work in spring 2021.
- Public sector pay to be frozen for a year, other than for NHS employees and those earning less than £24,000 a year.
- National Living Wage to increase by 2.2% to £8.91 an hour from April 2021 and the minimum age at which it applies is reduced to 23.
- Overseas aid to be cut from 0.7% of GDP to 0.5% in 2021.
Full details are available by downloading the attached file Spending_Review_2020.pdf