Rishi Sunak will use this opportunity to announce the conclusion of the 2021 spending review
The three-year review will determine the resource and capital budgets of UK government departments for 2022-23 to 2024-25 and block grants of distributed governance for the same period.
The chancellor said: “Since the start of the pandemic, we have worked on an unprecedented scale to protect people’s jobs and livelihoods.
“Despite the worst economic downturn in 300 years, we have not only brought people back to work through the plan” Jobs But the British continued to satisfy the preferences of the people.
That’s £12 billion on top of a £25 billion tax increase in the budget – it should be the biggest tax hike year in several decades
“In a spending review later this year, I will determine how we will continue to invest in public services and drive growth while keeping public finances on a sustainable path.”
This comes as the director of the Institute of Financial Studies Paul Johnson The UK was facing the “biggest tax hike year in several decades” after Boris Johnson announced tax changes to raise £12 billion for social care.
“That’s £12 billion on top of a £25 billion tax increase in the budget – it should be the biggest tax increase year in several decades,” he said on BBC Radio 4’s World at One programme.
The Treasury said core departmental spending would grow “on average by about 4% per year in real terms” compared to the current parliament.
By 2024-25, officials said this would mean spending £140 billion more per year in cash than in 2019.
But, following record public borrowing to tackle the coronavirus pandemic, departments are identifying at least 5% of savings and efficiencies from their day-to-day budgets as part of a spending review to “reinvest” in government priorities. being asked to do. .
The department said the spending review would focus on investing in public services, delivering on Boris Johnson’s so-called leveling-up agenda, transitioning to a “net zero” economy and “seizing opportunities” of Brexit.