Chancellor Rishi Sunak delivered his spending review to the House of Commons today. With the economic downturn caused by the coronavirus pandemic there was always going to be some unpopular decisions to be made.
Losers
Public Sector Workers
An estimated 1.3 million public sector workers will see their pay frozen as the Chancellor announced he “cannot justify a significant, across-the-board.” This decision will impact the salaries of firefighters, teachers, the armed forces, police, civil servants, council and Government agency staff.
Overseas Aid
The UK have contributed 0.70% of Gross National Income to overseas aid for the last seven years. From 2021 this will be cut to 0.50%. Rishi Sunak did confirm the this would increase back to the original level as an when the UK’s financial situation allows.
Winners
NHS staff and ‘some’ Public Sector Workers
Despite a wider public sector pay freeze, Nurses, Doctors and other NHS staff are exempt with more than one million staff beiong rewarded with a payrise.
2.1 million public sector employees earning below £24,000 will also receive at least £250 extra.
National Living Wage Earners
The national living wage is set to increase by 2.2% to £8.91 an hour – The national minimum wage will also increase.
