Thinktank praises Covid-19 response but says ‘splurge’ relies on already announced plansRishi Sunak’s first budget is not as generous as it seems and will leave many Whitehall departments worse off than they were before the spending squeeze began in 2010, according to Britain’s foremost economics thinktank.The Institute for Fiscal Studies said the chancellor made the budget sound more substantial than it was, while relying on previously announced spending plans. Continue reading...
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The central bank and the government unleash funds directed at rescuing Britain from the outbreak, while...The central bank and the government unleash funds directed at rescuing Britain from the outbreak, while repairing tattered budgets.
Budget 2020: Sunak's plans for current spending 'nothing like as generous as they appear', says IFS - live news
Rolling coverage of the day’s political developments as they happenRishi Sunak’s morning post-budget interviews - SummaryBudget...Rolling coverage of the day’s political developments as they happenRishi Sunak’s morning post-budget interviews - SummaryBudget current spending plans not as generous as they appear, says IFS 2.08pm GMT The Scottish government is to get an £350m as its share of the extra money that Rishi Sunak, the chancellor, released in yesterday’s budget to boost public spending to cope with the coronavirus crisis.A UK government source said Wales would receive £220m extra and Northern Ireland £120m. 1.56pm GMT The Institute for Fiscal Studies is holding its traditional day-after briefing on the budget. It started with an overview from Paul Johnson, its director, and the full text is now available on the IFS website.The OBR’s economic forecasts are a little more positive than the Bank’s, but they are still very weak even before factoring in possible longer term effects from the coronavirus. Projected growth rates averaging barely over one and a half per cent a year for the next five years are feeble and indicative of an economy that is not in a robust position for coping with shocks like the coronavirus. The OBR continues to assume an orderly move to a free trade agreement with the EU. Anything less orderly, or a failure to achieve such an agreement, would weaken an already weak economy even further.Only time will tell whether any of the numbers in this budget will have meaning once the economic effects of coronavirus become fully evident ...If the long-term path of the economy is affected then [Sunak] will also need to reassess much more of his fiscal strategy when he returns to the despatch box in the autumn.Average annual increases of 2.8% sound substantial. Take account of the need to replace EU funding, and factor in planned increases for health, schools, defence and overseas aid, and there is relatively little here for other departments. If this spending envelope is stuck to there are plenty of public services which will not be enjoying much in the way of spending increases over the next few years.While austerity is clearly at an end in the sense that spending is rising, spending levels in many areas are set to remain well below 2010 levels for a long time to come. Expectations may be disappointed. Continue reading...
The government is spending $38 billion to mitigate the effects of the coronavirus outbreak, but so...The government is spending $38 billion to mitigate the effects of the coronavirus outbreak, but so far has ruled out aggressive measures to fight it.