Chancellor’s Spending Review: Main points

November 25, 2020

Chancellor Rishi Sunak is delivering his much-anticipated Spending Review, outlining how the government will tackle the huge economic challenges caused by the coronavirus pandemic.

The main points so far are: 

The government is spending £280bn on tackling Covid-19

But the Chancellor says: “The economic damage is likely to be lasting.”

Forecast for UK borrowing this year is £394bn – 19% of GDP – “the highest recorded level of borrowing in our peacetime history”, according to Sunak.

The Office for Budget Responsibility says the economy will be 11.3% smaller this year.

It is expected to grow by 5.5% next year, then 6.6%, then 2.3%, then 1.7% and then 1.8%.

But will still be 3% smaller by 2025.

Unemployment forecast to hit 2.6m (7.5%) next year

£2.9bn plan to help people unemployed for more than a year to find work

The national living wage will rise by 2.2% to £8.91 per hour, benefiting 2m people, says Sunak

Chancellor Investment in a greener future

Establishment of a new infrastructure bank located in the North

Launch of £4bn ‘levelling-up’ fund to invest in local areas such as new bypasses, upgraded railway stations, less traffic or more libraries, museums, and galleries.

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