Chancellor Sajid Javid’s spending round – what you need to know
The Bromsgrove MP said he would ‘turn the page on austerity’ during his tenure at the Treasury.
Here are the key points from Chancellor Sajid Javid’s one-year spending round:
– A pledge to “turn the page on austerity” and bring about a “decade of renewal” after close to a decade of cuts.
– The Chancellor announced that day-to-day Government spending will increase by £13.8 billion next year – a 4.1% above inflation rise on 2019-20.
– Schools are set to see a cash boost, with every secondary school to be allocated a minimum of £5,000 per pupil by 2020-21, and every primary school £4,000 per pupil by 2021-22.
– A cash increase for the NHS with £33.9 billion a year by 2023-24 compared to 2018-19 budgets, and a new £1,000 personal development budget over three years for every nurse, midwife and allied health professional.
– Social care to receive an additional £1.5 billion, with £1 billion coming via a new Treasury grant and another £500 million raised through taxes.
– The Chancellor was given a chance to deliver a leadership pledge he made two months ago, giving a 6.3% spending rise to the Home Office – enough money to recruit 20,000 additional police officers.
– A £200 million grant to “transform” bus services will come out of a £490 million increase for the UK’s transport network.
– Confirmed a “rapid review of HS2” and vowed to “kick-start the infrastructure revolution” in the UK.
– Prison expansion will be given the go-ahead with a pledge to create 10,000 additional prison places while improving security.
– The Armed Forces will see a £2.2 billion funding boost, with Boris Johnson’s administration vowing to continue to meet the Nato target of spending 2% of GDP on defence.
– The foreign aid target of 0.7% of Gross National Income (GNI) will continue to be met by the new Government, Mr Javid said.
“£6.2bn increase in NHS funding next year. We’re investing more in training & professional development for our doctors & nurses, over £2bn of new capital funding – starting with an upgrade to 20 hospitals this year, & £250m for ground breaking new AI technologies.” #SpendingRound pic.twitter.com/q7yLRQ5bO6— HM Treasury (@hmtreasury) September 4, 2019
– Brexit “delivery” funding worth £2 billion was set aside to pay for more Border Force staff, “better transport infrastructure” at ports and “more support for business readiness”.
– The Cabinet minister said the “human cost” of homelessness was too high, and committed an extra £54 million to tackling rough sleeping, taking funding to reduce the blight on society to £422 million in 2020/21.
– Environmental concerns, including decarbonising Britain’s economy, tackling air quality and protecting sea life, received a £90 million funding uplift.
“A good school, inspirational teachers, are the most effective engine for social mobility that there is. That’s why today we are delivering on our pledge to increase school spending by £7.1bn by 2022-23.” - @SajidJavid #SpendingRound pic.twitter.com/uOJXqUWGiw— HM Treasury (@hmtreasury) September 4, 2019
– The Welsh government was handed an extra £600 million and Northern Ireland allocated £400 million more.
– The Chancellor recommitted the new Government to “meeting fiscal rules” and vowed: “I won’t squander the hard work of the last nine years.”