Today’s Spending Review was set in a difficult and challenging context. The economic impact of coronavirus and the action we have taken in response has significantly affected the British economy.
The OBR have forecast that the economy will contract this year by 11.3% – the largest fall in output for more than 300 years. Even with growth returning, our economic output is not expected to return to pre-pandemic levels until the fourth quarter of 2022. The economy, by 2025, is forecast to be around 3% smaller than previously expected.
Additionally, despite the extraordinary support we have provided, unemployment is expected to rise to 2.6 million people in the second quarter of next year.
Our number one priority is to protect jobs and livelihoods across the UK during the coronavirus pandemic and beyond. Our Spending Review sets out exactly how we’ll do that.
While the coronavirus continues to impact our country, we are delivering on our promise to give the NHS its biggest ever cash boost - a £156.4 billion day to day budget.
Our 2020 Spending Review confirmed a further £3 billion next year to support the NHS’s recovery from the impact of coronavirus, including £500m to improve access to mental health services, alongside investing £15 billion in NHS Test and Trace and £2.1 billion in PPE next year.
We will spend £260 million to educate and train our vital NHS workforce as part of our commitment to deliver 50,000 more nurses and create an additional 50 million GP appointments a year.
And we are providing £9.4 billion of capital funding for projects such as the 40 new hospital building programme, over 70 hospital upgrades and replacing the vast majority of ageing diagnostic equipment.
Our fantastic NHS and public services was at the heart of our manifesto commitments. And as we continue to tackle coronavirus, we are making sure our NHS has the resources and support it needs.
It is our Government’s priority to make our streets safer, so that the law abiding majority can live their lives free from fear.
Our 2020 Spending Review will make our streets safer by cracking down on crime. Next year, funding for the criminal justice system will increase by over £1 billion.
We are providing more than £400 million to recruit 6,000 new police officers. That means we are on track to meet our manifesto pledge to recruit 20,000 more police officers by 2023.
We are also delivering £275 million for the criminal justice system to bring more offenders to justice, along with a four-year, £4 billion prison building programme to provide 18,000 new prison places across England and Wales. This extra funding is vital to keep our country safe and ensure criminals are kept off our streets.
While our health emergency is not yet over, the economic emergency has only just begun.
So, today’s Spending Review delivers on the priorities of the British people:
This is a shared project – a common endeavour to build a better nation to which every person and business in our country has a contribution to make. That unfinished work – irrespective of coronavirus – continues at pace as we emerge stronger and more united from this pandemic.