- The Government has spent £280bn this year to fight coronavirus. It will spend an additional £55bn to support public services next year.
- Unemployment in the UK is predicted to rise to a peak of 7.5% (2.6 million people) in the second quarter of 2021. It is also forecast that this will fall in every coming year and will hit 4.4% by the end of 2024.
- Public sector pay rises will be paused next year – except for those earning less than £24,000 who will get a pay rise of at least £250. NHS staff will also be exempt.
The Chancellor also announced:
A cut to International Aid taking this down to 0.5% in 2021 of our national income.
A new UK infrastructure bank whose headquarters will be in the North of England. This will finance infrastructure projects from next Spring.
2.1m public sector workers earning less than the median wage of £24,000 will be guaranteed a pay increase of at least £250.
As always we expect to receive further details on today’s announcements within the next 24 hours. Please contact us if you have any questions on 020 7330 0000.