Left Menu
Development News Edition

UK's Sunak: no return to austerity in new spending plan

Sunak told Sky that the forecasts to be published alongside his spending blueprint would show the "enormous strain" that coronavirus has put on the economy and the priority for his plan would be to fight the pandemic. Britain's finance ministry said on Saturday that Sunak was expected to announce one-year package worth more than 3 billion pounds ($3.98 billion) to support the state-run National Health Service (NHS) as it struggles with coronavirus.

Reuters | London | Updated: 22-11-2020 16:33 IST | Created: 22-11-2020 15:50 IST
UK's Sunak: no return to austerity in new spending plan
Representative image. Image Credit: Twitter(@RishiSunak)

British finance minister Rishi Sunak said there would be no return to austerity and instead he will announce "quite a significant" increase in funding for public services in a one-year spending plan on Wednesday.

"You will not see austerity next week," Sunak told Sky News television on Sunday. "What you will see is an increase in the government's spending on day-to-day public services, and quite a significant one, coming on the increase that we had last year." Sunak will announce the heaviest public borrowing since World War Two after Britain suffered the biggest economic crash in over 300 years.

Economists think Britain is on course to borrow about 400 billion pounds ($531.28 billion) this year, approaching 20% of its gross domestic product, or nearly double its borrowing after the global financial crisis. Sunak told Sky that the forecasts to be published alongside his spending blueprint would show the "enormous strain" that coronavirus has put on the economy and the priority for his plan would be to fight the pandemic.

Britain's finance ministry said on Saturday that Sunak was expected to announce one-year package worth more than 3 billion pounds ($3.98 billion) to support the state-run National Health Service (NHS) as it struggles with coronavirus. Asked about reports that he would freeze public sector pay as part of an attempt to slow the surge in borrowing caused by the pandemic, Sunak said it was reasonable to look at state salaries in the context of the broader economy.

"When we think about public pay settlements, I think it would be entirely reasonable to think about those in the context of the wider economic climate," he said. Sunak declined to answer questions on possible tax increases saying he would not be talking now about future budget decisions.

($1 = 0.7529 pounds)


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Iran outlines budget, promises less reliance on oil amid U.S. sanctions

Irans government presented a draft state budget of about 33.7 billion to parliament on Wednesday, promising less reliance on oil revenues and higher growth despite U.S. sanctions that have crippled the Islamic Republics economy, Iranian med...

World must not accept slavery in 21st century: Guterres

Slavery is not simply a matter of history. Today, more than 40 million people are still victims of contemporary slavery. I call on countries, civil society the private sector to strengthen their efforts to end this abhorrent practice....

BV Srinivas appointed regular president of Youth Congress

Congress president Sonia Gandhi on Wednesday appointed B V Srinivas as the regular president of the Indian Youth CongressSrinivas was earlier appointed as interim president in July 2019 when Keshav Chand Yadav resigned from the post after t...

C'garh: patient dies after oxygen leak leads to evacuation

A leakage in an oxygen cylinder forced the evacuation of patients from the Intensive Care Unit of a government hospital in Chhattisgarhs Rajnandgaon district following which one patient died on Wednesday, officials said. Health officials sa...

Give Feedback