Chancellor Rishi Sunak’s spending review revealed the devastating economic damage caused by the coronavirus pandemic, as he told MPs who are expected to see the UK economy suffer the biggest drop in production in more than 300 years

Rishi Sunak has warned that the UK’s “economic emergency” caused by Covid-19 has only just begun and it will take years for the country to fully recover

In his first spending review, the Chancellor told MPs that the UK economy is projected to shrink by 113 percent this year – the biggest drop in production in more than 300 years – and unemployment is expected to peak at 75 percent, or 26 million People in 2021

The government will borrow a staggering £ 394 billion this year, equivalent to 19 percent of GDP – the highest ever peacetime – and warns that the economy will suffer “permanent damage.”

NHS doctors and nurses will see wages rise, but the rest of the public sector will be hit by a horrific wage freeze that is causing anger among workers and unions

Millions of people benefits will increase by just 37p a week in April, and Britain’s low paid will get a raise of just 19p an hour next year

The Chancellor was also convicted for reducing British foreign aid to the world’s poorest nations to 0.5 percent of national income

Its National Infrastructure Strategy states: “Improving the rest of the UK doesn’t mean lowering London

“The government continues to address capacity issues in the capital by funding the completion of Crossrail but has agreed that Transport for London will stop developing Crossrail 2

“This will free up investment to upgrade the performance of public transport networks in regional cities towards London’s gold standard”

Britain will be “poorer in the eyes of the world” due to cuts in aid, said former Foreign Secretary Jeremy Hunt

He told Commons: “I acknowledge that the Chancellor made the decision on 07 percent with an extremely heavy heart, but he recognizes that the respect for this country around the world is that we are in have campaigned throughout our history on causes that matter to people everywhere such as democracy, human rights, and the rule of law

“One of these causes is the fight against extreme poverty So if we cut our aid budget by a third in a year when millions more fall into extreme poverty, not only they but we will become poorer in the eyes of the world because people will worry about us being a noble one To give up the ideal, for which we have campaigned more in this country than for any other ”

Rishi Sunak replied, “There are many ways in which we can exert our influence and values ​​around the world Help is only part of ”

Millions of people in England face a staggering tax hike by the Inflation Council in April, today’s spending review revealed

Councilors will be free to increase the bills by up to five percent, even though wages and inflation will fall during the pandemic

Two percent of the increases can go to general funds and three percent to welfare

Martin Lewis has found that some UK workers will see the minimum wage rise much faster over the next year than others

Chancellor Rishi Sunak announced today a 2.2 percent rise to the minimum wage this coming April – 19 pence an hour for over 25 years

But a second change has also been announced – and that means there is an 866 percent more – work out at 71p an hour – come to a group

A former caregiver said the government’s living wage increase made a difference for her: “£ 891 is not enough”

George Gwilliam, 22, from Portsmouth, used to be a caregiver during the pandemic and “worked all the hours that God sent and barely came by”

George said, “891 lbs is not enough. It’s a step in the right direction, but it really isn’t enough – £ 10 an hour is the bare minimum people would need these days”

However, the former sales rep said the increase was “non-smell” and would cover a grocery store for some

“It doesn’t sound like a lot, but it would have made me feel more valued. It would have meant an extra £ 60 a week and that can’t be missed This is a grocery store,” George said. “I think my time on the lower one Lohn showed me how undervalued nurses and retail workers really are ”

– Coronavirus deals the worst blow to the economy in 300 years, with GDP falling by 113 percent

– The pandemic has likely created “long-term scars,” meaning the economy will be around three percent smaller in 2025 than expected in the March budget

– The government will borrow £ 394 billion this year, equivalent to 19 percent of GDP – the highest level ever seen in peacetime

– The underlying debt is projected to be 919 percent of GDP this year and is projected to increase further to reach 975 percent of GDP in 2025/26

– The OBR expects unemployment to peak at 75% in the second quarter of 2021 – 26 million people

– Nurses, doctors and others in the NHS will get a raise, but the rest of the public sector will be on hold next year

Regarding budget cuts for foreign aid, Tim Montgomerie, former Prime Minister’s Advisor on Social Justice, tweeted:

“1 Boris promised me twice that he would never give up 07% But who cares what he told me?

He added that the Prime Minister “broke a promise to the poorest people in the world when they needed it most”

“Under this Prime Minister, Britain is becoming a nation that does not keep its word,” he added

Ms. Dodds accused Mr. Sunak of “threatening” companies to make an increased contribution to vacation at the “worst possible time”

She told Commons, “In order to rebuild the business, the Chancellor must also listen to the deal. We’re less than a week after the lockdown ended, but we haven’t heard about any additional support from the support grant.” additional restrictions are provided for areas that are again severely restricted

“And the Chancellor is still threatening employers with an increased contribution to vacation in January, at the worst possible time to strengthen and build trust”

Ms. Dodds added that the government’s claim of “improving” the country “just doesn’t match the evidence”

She told MPs: “So far, £ 12 billion has been spent on a test and trace system that is still not working

“And today there is news of additional costs of 10 billion GBP for PSA, at least in part due to the lack of prepandemic planning by the Conservatives

“This waste and mismanagement is part of a longer-term pattern that shows that today’s claims about ascension just don’t align with the evidence”

Anneliese Dodds says the Conservative government “wasted and poorly managed public finances on an industrial scale” during the pandemic

Labour’s shadow chancellor said: “Many key workers who have willingly accepted so much responsibility during this crisis are now being forced to tighten their belts – now – not on the” middle opportunity “the Chancellor is now referring to / p>

“In contrast, there was a bonanza for those who won contracts from this government. Companies with political ties were ten times more likely to win government contracts

“So many companies have worked tirelessly through this pandemic to support local communities, maintain critical supplies and, in the case of AstraZeneca, produce drugs and vaccines at cost – in collaboration with some of the best scientists in our country

“But in its response to this pandemic, the Conservative government has wasted and mismanaged public finances on an industrial scale”

The Chancellor has gone from clapping for supervisors to a wage freeze, said Labour’s shadow chancellor

Anneliese Dodds responded to the expenditure review statement to Commons: “At the beginning of this year, the Chancellor stood on his doorstep and clapped for key people

“Today his government is putting a wage freeze on many of them. This brings a sledge hammer to consumer confidence”

In conclusion, Rishi Sunak told the Commons, “We in government can lead the way – better schools, more houses, stronger defense, safer roads, green energy, technological development, improved railways, improved roads, all investments that create jobs and give every person in this country the chance to realize their potential

“But it is the individual, family and community that must become stronger, healthier and happier as a result. This is the true measure of our success

“The issues announced today are secondary to the courage, wisdom, friendliness and creativity that they display. These are the incalculable but essential parts of our future and they cannot be mandated or distributed by the government.” p>

“These things must come from each of us and be freely shared, because the future, this better country, is a shared endeavor

“Today the government financed the priorities of the British people, now the task of delivering them begins”

The Chancellor says he is setting up a new £ 4 billion fund to finance local infrastructure improvement projects

Rishi Sunak said the government would publish a national infrastructure strategy and said, “To fund our plans, I can announce that we will be creating a new UK infrastructure bank

“The bank, headquartered in the north of England, will be working with the private sector starting this spring to fund major new investment projects across the UK”

He also announced a 4 billion leveling up fund GBP to allow municipalities to apply for projects such as a new bypass, train station modernization and more money. Mr Sunak told MPs: ‘Projects need to have real impact, they need to be done within this Parliament and they need to get local support, also from her MP ”

The union congress tweeted, “National minimum wage workers – not least the two million who are key workers – have been disappointed by the government’s decision to restart the full hike promised”

Shadowing Secretary Kate Green said the wage freeze for public sector workers outside the NHS was “a kick in the teeth for committed young workers, teachers, teaching assistants and support staff who have worked tirelessly on children to educate Covid “

Rishi Sunak said school budgets will increase by £ 2 billion next year before turning to a temporary cut in foreign aid spending

He told MPs: “During a domestic budget emergency when we need to prioritize our limited resources on jobs and public services, we stick to spending 07 percent of our national income on foreign aid is difficult for the British people to justify – especially when peacetime borrowings are highest in peacetime

“I have listened with great respect to those who have worked passionately to maintain this goal. But in a time of unprecedented crisis, the government must make difficult decisions”

He said 05 percent of national income will be spent on foreign aid in 2021 – the equivalent of £ 10 billion in the spending review – before determining, “We intend to go back to 07 percent if budgetary allows”

Mr Sunak says all domestic funding across the UK “will be at least equal to EU revenues” while the “core health budget” will grow by £ 6 billion next year

He also says the settlement will allow local authorities to increase their “core spending power” by 4.5 percent, “noting,” Local authorities will have additional flexibility in terms of council tax and adult social security requirements have – which, along with £ 300m of new grant funding, gives them access to an additional £ 1bn to fund social welfare

“This comes in addition to the additional social assistance subsidy of 1 billion Add to this the GBP that we have allocated this year and which I can confirm will be maintained for the next year ”

The budget for foreign aid will be cut to 0.5 percent of gross national income in 2021, confirmed Mr. Sunak, but said the government’s “intention” was to return to 0.57 percent if budgetary conditions permit

The total department spending next year will be 540 billion With daily departmental spending increasing by 3% in real terms, the Chancellor said

The Chancellor said the Barnett formula will add £ 2 billion to Scottish government funding and £ 13 billion to Welsh government funding, with £ 09 billion to the Northern Irish executive

Mr. Sunak says the government will increase the national living wage by 2.2 percent to £ 891 an hour

A few moments ago he highlighted the differences between public sector and private sector wages and added that under the circumstances he could not justify a significant general wage increase for all public sector workers

He told MPs: “Taking into account the recommendations of the payroll inspectors, we will be giving a raise to over a million nurses, doctors and others working in the NHS.

“Second, in order to protect jobs, the salary increases in the rest of the public sector will be suspended next year

“The 21 million public sector workers who are below the average wage of 24Earning £ 000 is guaranteed a raise of at least £ 250 ”

The Chancellor said the “majority” of public sector workers would see a pay rise next year

Rishi Sunak said that nearly £ 3 billion would be allocated to Labor and Pensions Minister Therese Coffey to run a new three-year “restart program” that will help more than a million people who have been unemployed for more than 12 months supposed to find new work

He added that unemployment is projected to soar to a high of 7.5 percent – or 26 million people – in the second quarter of 2021

The Chancellor also said: “Unemployment is projected to decrease every year and reach 4.4 percent by the end of 2024”

A new “British Infrastructure Bank” headquartered in the north of England to fund large new projects is being set up, Sunak said

The 21 million public sector workers who are below the average wage of $ 24Earning £ 000 is guaranteed a raise of at least £ 250 for the next year, Sunak said

Mr Sunak says NHS doctors and nurses will receive a raise, but raises in the rest of the public sector will be “paused” next year

The OBR expects unemployment to peak at 75 percent in the second quarter of 2021 – 26 million people, said Mr Sunak

Previously, the Chancellor had reaffirmed that Great Britain was facing an “economic emergency”, but that company bankruptcies had declined compared to the previous year The latest data shows that the UK has lower unemployment than Italy, France, Spain and Canada and the United States ”

The UK is expected to borrow £ 394 billion this year – that’s 19 percent of the country’s GDP, according to the Chancellor

This is a record level of peacetime borrowing, reaching 100 billion by the end of Parliament Will stay GBP or more per year

The Chancellor said the borrowing would amount to 164 billion next year GBP falls to 105 billion between 2022 and 2023 GBP, and then around 100 billion for the rest of the forecast period GBP stay

Mr Sunak said underlying debt is projected to be 919 percent of GDP this year and is expected to continue to rise to 975 percent of GDP in 2025/26

The Chancellor says that economic output is not expected to return to pre-crisis levels until the fourth quarter of 2022

“Long-term scarring means the economy will be around three percent smaller in 2025 than expected in the March budget”

The economy will shrink by 113 percent – the biggest decline in more than 300 years, says the Chancellor

He said, “If the restrictions are relaxed they expect the economy to recover and grow by 5.5 percent in the next year, 66 percent in 2022, then 23 percent, 17 percent and 18 percent in the following years.” / p>

“Even if growth returns, our economic output is not expected to return to pre-crisis levels until the fourth quarter of 2022 – and the economic damage is likely to be permanent. Long-term scarring means that the economy will shrink by around three percent in 2025 will be as expected in the March budget ”

A Tory MP has called for data to be published explaining the economic implications at different levels

Conservative MP Andrew Rosindell (Romford) said, “As the London area may adopt tougher Tier 3 or Tier 2 lockdown measures and the devastating consequences of this, jobs, livelihoods, businesses and indeed, will affect the body and mind Mind emerges health as the Prime Minister has a duty to follow the evidence he will agree to a full public cost-benefit analysis of the impact on our economy and public health before introducing anything that could cause years of economic damage, which could ultimately happen worse in people’s lives than the virus itself? “

Boris Johnson replied, “We will of course do an analysis of the health, economic and social implications of the tiered approach and the data supporting tiered decision making as we have done in the past”

Fears are growing that a third wave of coronavirus could hit the UK after rules were relaxed over Christmas

Three households can move between until 27 The government announced on Tuesday that it would unite under one roof under one roof for five days in Great Britain to form an exclusive “Christmas bubble”
However, scientists have raised concerns that this will lead to increased transmission of the virus, with overcrowded hospitals and more deaths

The Registrar is expected to release his spending review in about 10 minutes after the PMQs

Among the highs it will be 3 billion Giving GBP more to support the NHS, including $ 1bn GBP to address the backlog of treatment while attention was focused on Covid-19 patients

A new restart scheme will receive £ 29 billion over three years to help more than one million people find work

The Prime Minister had already announced that the ministers would not receive an increase in their salaries in the next year, which he controls

Rishi Sunak

World News – UK – Spending Review – All You Need To Know When Britain Got Into “Economic Emergency”