The government spending review for 2021, came in the wake of the huge expenditure and borrowing in response to the Covid pandemic.
Whilst the size of the £280 billion bill to date, with £55 billion more to come in 2021 was confirmed, how the UK will now pay for that and what potential tax rises lie around the corner, remained unspoken and was left until the 2021 budget.
Economy to retract this year by 11% and not return to pre-Covid levels until Q4 2022
Borrowing is £394 billion this year, highest in UK history
Underlying debt will be 95.7 % GDP in 2025/26
7.5% unemployment projected by the second half of 2021 - 2.6million people
Pay rise for 1 million frontline NHS workers
Pay freeze for all public sector workers, barring frontline NHS staff
Public sector workers earning under £24,000 will be guaranteed a £250 pay rise
National living wage rise to £8.91 an hour
Departmental spending up £14.8 billion in cash terms compared to 2020/21.
£24 billion spending in defence over three years
Minimum wage increase to around 2 million people.
National Living Wage up by 2.2% to £8.91 an hour
Extend this rate to those aged 23 and over
A full-time worker on NLW will see their annual increase of £345 next year.
Levelling up:- a fund of £4 billion to fund local infrastructure projects for which a local area can bid with the backing of their MP, all to be delivered before the end of this parliament,
£100 billion capital spending next year
Publishing a new national infrastructure policy
Launching a new infrastructure bank based in the north of England
Houses £7.1billon - and simplified planning system
Broadband for 5 million homes
OVERSEAS AID CUT
UK's overseas aid budget cut to 0.5% of national income, down from the legally binding target of 0.7%.
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