Javid presents Spending Review

The Chancellor has delivered his Spending Round to Parliament, including a £13.8 billion real term increase in day-to-day spending to deliver on the public’s priorities.

The Spending Round sets out departmental spending plans for 2020-2021 to deliver on the public’s priorities, including health, education, and security. Departmental day-to-day spending is paid for through resource budgets which covers things like schools and hospitals’ running costs, and public sector pay.

The spending round, fast-tracked this year so that departments can focus on delivering Brexit, confirmed spending plans revealed over the last few weeks by Sajid Javid, including every secondary school being allocated a minimum of £5,000 per pupil by 2020-21, and every primary school £4,000 per pupil by 2021-22. This is in addition to over £700 million extra funding to support children and young people with special educational needs compared to 2019-20 funding levels, and £400 million to train and teach more than a million 16 to 19-year olds the skills they need for well-paid jobs in the modern economy.

The Spending Round also reaffirmed the government’s commitment to the NHS giving it a cash increase of £33.9 billion a year by 2023-24 compared to 2018-19 budgets. A new £1,000 personal development budget will also be provided over three years for every nurse, midwife and allied health professional. 

Councils will have access to a further £1.5 billion for social care – £1 billion through a new grant and £500 million through the adult social care precept. This will support local authorities to meet rising demand and continue to stabilise the social care system.

Councils will also benefit from a new £54 million funding pot to address homelessness and rough sleeping, as well as £3.6 billion for the new towns fund to put more money into local communities, including in the north of England.

Furthermore, a £490 million cash increase in the UK’s vital transport network was announced, which will help businesses, people and goods travel around the country. This includes extra funding to make buses more environmentally friendly, rail track maintenance to ensure more reliable journeys, and continued support for development of major projects.

Tackling air quality, at least £250 million will also be provided to the international climate and environment funds, including the Green Climate Fund – the leading fund dedicated to helping meet the landmark Paris Agreement on climate change.

James Jamieson, chairman of the Local Government Association, said: “We are delighted that today’s Spending Round has delivered a funding package of more than £3.5 billion for our vital local services next year. This is the biggest year on year real terms increase in spending power for local government in a decade and will allow councils to meet the rising cost and demand pressures they face in 2020/21.

“The LGA has worked hard to demonstrate to the government the financial pressures facing councils next year. We are pleased it has responded to our calls and acted by providing desperately-needed new money next year, including £1 billion for social care and £700 million for children and young people with special educational needs. This will help councils as they strive to ensure older and disabled people can live the lives they want to lead, support our most vulnerable young people and allow them to continue to improve local areas.”