HIGHLIGHTS-UK's Sunak delivers spending plans to parliament

British finance minister Rishi Sunak announced a one-year spending plan to parliament along with new forecasts for the country's coronavirus-hit economy. And it delivers a once-in-a-generation investment in infrastructure." SPENDING "This year, we are providing 280 billion pounds to get our country through coronavirus.

British finance minister Rishi Sunak announced a one-year spending plan to parliament along with new forecasts for the country's coronavirus-hit economy. Below are highlights from the speech:

HEALTH EMERGENCY, ECONOMIC EMERGENCY "Our health emergency is not yet over. And our economic emergency has only just begun. So, our immediate priority is to protect people’s lives and livelihoods. But today’s Spending Review also delivers stronger public services. Paying for more hospitals, better schools and safer streets. And it delivers a once-in-a-generation investment in infrastructure."

SPENDING "This year, we are providing 280 billion pounds to get our country through coronavirus. Next year, to fund our programmes on testing, personal protective equipment, and vaccines – we are allocating an initial 18 billion pounds."

ECONOMIC FORECASTS "The OBR forecast the economy will contract this year by 11.3%, the largest fall in output for more than 300 years. As the restrictions are eased, they expect the economy to start recovering… …growing by 5.5% next year, 6.6% in 2022, then 2.3%, 1.7% and 1.8% in the following years."

"Our economic output is not expected to return to pre-crisis levels until the fourth quarter of 2022. And the economic damage is likely to be lasting. Long-term scarring means, in 2025, the economy will be around 3% smaller than expected in the March Budget." DEBT

"Underlying debt is forecast to continue rising in every year, reaching 97.5% of GDP in 2025-26. High as these costs are, the costs of inaction would have been far higher." 

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