Spending Round - £13.8 billion more for public services
06 September 2019
In the Spending Round Chancellor Sajid Javid declared the end of austerity and said a 4.1% rise in real-terms day-to-day spending is the biggest increase in 15 years.
The Chancellor set out departmental spending plans for 2020-2021 to deliver on the public’s priorities, including health, education, and security.
Public spending will rise to 38.6% of GDP in 2020/21, up from 38.1% last year and 38.3% this year. The announcement includes a £6.2bn increase in NHS funding; a £7.1bn boost for education spending by 2022/23; £750m for recruiting 20,000 new police officers; a 6.3% increase for Home Office spending; a 2.6% boost for the Ministry of Defence; and confirmation of an additional £2bn in Brexit preparation funding.
To summarise here are the key announcements from the Spending Round:
This is the fastest planned increase in day-to-day departmental spending in 15 years
Day-to-day departmental spending will now grow by 4.1% above inflation in 2020-21 compared to the previous year. For the first time since 2002, no government department will see a cut to its day-to-day budget.
There is £13.8 billion more for public services
Compared to the previous year, departments will get a £13.8 billion real-term increase in day-to-day spending to deliver on the public’s priorities.
This is a fast-tracked spending round so departments can focus on delivering Brexit
This Spending Round concentrates on departmental budgets for 2020-2021. The next multi-year Spending Review will be carried out in 2020.
Money for schools is going up
Increase in funding means that every secondary school will be allocated a minimum of £5,000 per pupil by 2020-21, and every primary school £4,000 per pupil by 2021-22.
There is over £700 million extra funding to support children and young people with special educational needs compared to 2019-20 funding levels, and £400 million to train and teach more than a million 16 to 19-year olds the skills they need for well-paid jobs in the modern economy.
Promises to the NHS are being delivered
Reaffirms the government’s commitment to the NHS, giving it a cash increase of £33.9 billion a year by 2023-24 compared to 2018-19 budgets.
A new £1,000 personal development budget over 3 years for every nurse, midwife and allied health professional.
There is an extra £1.5 billion for social care
Councils will have access to a further £1.5 billion for social care – £1 billion through a new grant and £500 million through the adult social care precept.
20,000 more police officers will be recruited to keep our streets safe
The most generous settlement the Home Office has received in the last 15 years will help fund the government’s commitment to recruit 20,000 additional police officers, and tackle child sexual exploitation.
The crackdown on crime will be supported by 10,000 additional prison places
Extra funding to begin delivery of the 10,000 additional prison places, improve security in prisons, and support the ongoing reform of the probation system.
The Armed Forces will get a £2.2 billion funding boost
£2.2 billion in additional funding made available for the UK’s world-class Armed Forces. This ensures the government will continue to exceed its commitment to grow the defence budget by 0.5% in real terms, with the UK continuing to exceed the NATO target.
Over £200 million will be spent to transform bus services
A £490 million cash increase in the UK’s vital transport network - includes extra funding to make buses more environmentally friendly, rail track maintenance to ensure more reliable journeys, and continued support for development of major projects.
There is Brexit funding for after the UK has left the EU
£2 billion in 2020-21 will help the UK to establish a new relationship with the EU and capitalise on the opportunities created by Brexit.
Decarbonisation, air quality, and biodiversity will get a £90 million funding boost
Additional funding to accelerate decarbonisation schemes, improve air quality and to protect and enhance biodiversity. At least £250 million will also be provided to the international climate and environment funds, including the Green Climate Fund.
Public services are being funded while keeping control of the public finances
More money to support vital public services while being delivered within the government’s existing fiscal rules. The government will review the fiscal framework alongside an updated economic and fiscal forecast and set out a new economic plan at the Budget.
The Spending Round can be read in full on GOV.UK.
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