2020 spending review at a glance

Posted by siteadmin on Wednesday 25th of November 2020.

  • Forecasts from the Office for Budget Responsibility (OBR) show the economy will contract by 11.3% this year
  • It may take until the end of 2022 for the economy to return to its pre-pandemic size
  • GDP will grow by 5.5% next year, 6.6% in 2022, 2.3% in 2023, 1.7% in 2024 and 1.8% in 2025
  • The budget deficit will be £394bn this year
  • Borrowing will remain at £164bn next year
  • Pay rises for the public sector will be paused next year (There will be an exemption for more than 1 million nurses and doctors in the NHS)
  • National living wage will be increased to £8.91 an hour, and extended to over-21s
  • Overall unemployment is expected to peak next year at 7.5%
  • Day-to-day departmental spending will rise in real terms by 3.8%
  • The government will match EU funding for regional development after Brexit
  • The core health budget will grow by £6.6bn
  • The schools budget will increase by £2.2bn
  • The government will cut the overseas aid budget to 0.5% in 2021
  • Investment in infrastructure will total £100bn next year

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