John Baron MP responds to Chancellor’s Spending Review

MP welcomes support for unemployed

The Government’s Spending Review, announced in the House of Commons this afternoon by the Chancellor, Rt Hon Rishi Sunak MP, first of all set out how the Government will continue to respond to the coronavirus pandemic. The Chancellor also set out how the Government will deliver stronger public services, including more hospitals, better schools and safer streets, as well as infrastructure investment of £100 billion.

Although there will be an overall public sector pay freeze (in order to preserve fairness with the private sector), doctors, nurses, NHS workers and the 2.1 million public sector workers who earn less than £24,000 will receive a pay rise – meaning that the majority of public sector workers will still receive a pay rise next year.

The Government will also accept the recommendation of the Low Pay Commission and accordingly increase the National Living Wage by 2.2.% to £8.91 per hour, and will extend this to people aged 23 or over. These increases will benefit around two million people. A full-time worker on the National Living Wage will see their pay rise by £345 next year, an effective increase of over £4,000 since the policy was introduced in 2016.

The Chancellor also announced that, due to the coronavirus emergency, international aid spending will fall from 0.7% of GNI to 0.5%, returning to 0.7% as soon as possible. 0.5% will still make the UK the second-highest international aid donor in the G7 and more generous than Japan, Canada, Italy and the US.

John said,

“This Spending Review is set against a difficult economic situation due to the coronavirus pandemic, and the Chancellor has had to make some difficult decisions. However, I am pleased to see the additional investment in public services and infrastructure, and it is also welcome that increases to the National Living Wage will boost the incomes of many of the lowest-paid. Amongst other measures, the majority of public sector workers will receive a pay rise next year.”

“In addition, I also welcome the £3 billion for the new three-year programme to help nearly one million people who have been unemployed for over a year to find work. Our economy has taken a substantial hit from the pandemic, but we should not forget that the latest data show that the UK’s unemployment remains lower than Italy, France, Spain, Canada and the United States.”