{"id":2545,"date":"2021-10-28T10:35:25","date_gmt":"2021-10-28T09:35:25","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=2545"},"modified":"2021-10-28T10:38:56","modified_gmt":"2021-10-28T09:38:56","slug":"autumn-budget-spending-review-2021","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/10\/28\/autumn-budget-spending-review-2021\/","title":{"rendered":"Autumn Budget & Spending Review 2021"},"content":{"rendered":"
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\u201cAn economy fit for a new age of\noptimism\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

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Chancellor of the Exchequer, Rishi\nSunak, delivered his <\/strong>third<\/strong> Budget and<\/strong> <\/strong>the results\nof his Spending Review on <\/strong>27<\/strong> October, declaring that <\/strong>it begins<\/strong> <\/strong>“the work of preparing for a\nnew economy post-COVID.”<\/em><\/strong> T<\/strong>he Chancellor struck an upbeat tone d<\/strong>uring <\/strong>the<\/strong> key <\/strong>fiscal event, as he outlined his\nvision of \u201can economy fit for a new age of optimism,<\/em> <\/strong>where the\nonly limit to our potential is the effort we are prepared to put in and the\nsacrifices we are prepared to make.\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

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E<\/strong>conomic\nforecasts<\/strong><\/p>\n<\/div>\n\n

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The Chancellor began his statement by revealing updated projections from the Office\nfor Budget Responsibility (OBR), which predict that recovery from the depths of the pandemic\nwill be quicker than previously thought. The revised figures suggest that the UK economy will grow by 6.5% this year, a significant upgrade from March\u2019s 4%\nfigure. The forecast implies the economy will regain its pre-pandemic level by the turn of the year, six months\nearlier than previously expected. <\/p>\n<\/div>\n\n

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Medium-term GDP predictions were also upgraded as the OBR now estimates that long-term pandemic-related economic scarring will be 2% rather\nthan the 3% assumed in March. As a result of this, along with a number of government policy changes, public sector net borrowing is\nnow projected to be equivalent to 7.9% of economic output, down from the\nprevious forecast of 10.3%. In addition, borrowing figures across each of the\nsubsequent four financial years have also been lowered. <\/strong><\/p>\n<\/div>\n\n

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The Chancellor did, however, acknowledge that the\ncost of living is rising. The OBR predictions suggest the CPI measure of\ninflation will average 4% over the next year, peaking at 4.4% in the second\nquarter of 2022. Mr Sunak said, \u201cThe pressures caused by supply chains and\nenergy prices will take months to ease”<\/em> adding “it would be\nirresponsible for anyone to pretend that we can solve this overnight.”<\/em><\/strong><\/p>\n<\/div>\n\n

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Spending Review<\/strong><\/strong><\/p>\n<\/div>\n\n

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Prior to Budget Day, the Treasury had released a\nseries of funding\nannouncements including statements setting out spending plans for transport,\nhealth and education. During his speech, Mr Sunak stated that his Budget \u201cincreases\ntotal departmental spending over this Parliament by \u00a3150bn, with spending\ngrowing by 3.8% a year in real terms<\/em>.\u201d He added, \u201cAs a result of this\nSpending Review, and contrary to speculation, there will be a real terms\nincrease in spending for every government department.\u201d<\/em><\/p>\n<\/div>\n\n

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The specific spending pledges mentioned during the\nChancellor\u2019s speech include:<\/p>\n<\/div>\n\n

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