Chancellor presents Spending Review

26 Nov 2020

On 25 November Chancellor Rishi Sunak delivered his latest Spending Review to the House of Commons, and stated that the coronavirus (COVID-19) pandemic has caused 'lasting damage' to the UK economy.

The economy is forecast to shrink by 11.3% this year and is not expected to return to its pre-pandemic size until the end of 2022. Government borrowing is also expected to rise to its highest level ever outside of wartime. The Chancellor revealed that the government has already provided £280 billion to help the UK combat COVID-19, and said that 'the costs of inaction would have been higher'.

Mr Sunak said: 'We have a responsibility, once the economy recovers, to return to a sustainable fiscal position. This is an economic emergency. That's why we have taken, and continue to take, extraordinary measures to protect people's jobs and incomes.'

In the Spending Review, the Chancellor announced a number of measures, including increases to the National Minimum Wage (NMW) and National Living Wage (NLW) rates. The NMW will rise to £8.36 per hour from 1 April 2021, whilst the NLW will rise to £8.91 per hour and will be extended to 23 and 24-year-olds for the first time.

The Chancellor also announced that 1.3 million public sector workers will see their pay frozen in 2021/22; the overseas aid budget will be reduced by £4 billion; and a new £4 billion 'levelling up' scheme that will fund the upgrading of local infrastructure across the UK.

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2024 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited, 52-56 Leadenhall Street, London, EC3A 2EB (Policy Number: 44402654). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.