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Home Politics

Budget 2021: Sunak promises a new post-Covid economy amid the anger of the Municipalities

by BBC News
October 27, 2021
in Politics
Reading Time: 9 mins read
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Budget 2021: Sunak promises a new post-Covid economy amid the anger of the Municipalities

The chancellor has promised that his budget “begins the work of preparing for a new economy” post-Covid, after rafts of political advances have angered the municipalities.

Spending on transport, health and education has already been unveiled in the press, sparking the fury of the president, Sir Lindsay Hoyle.

But Wednesday will see Rishi Sunak filling in the gaps in his budget and how he intends to pay all the commitments.

The policies include £ 5.9 billion for NHS England and wage increases across the public sector.

But the Treasury has already asked departments to find “at least 5% savings and efficiencies from their daily budgets” – so it is clear that not all areas will receive the same treatment.

And Labor has warned that spending commitments are not enough to offset the rise in taxes and prices, leading to an increase in the cost of living.

  • Will Sunak’s plans calm worries about the cost of living?
  • A simple guide to the 2021 Budget
  • Budget 2021: what has already been announced?

Traditionally, the government is expected to make key political announcements to parliamentarians before speaking to the press, as it is the elected representatives who can demand their account in the debates.

But an unprecedented number of spending plans were given to the media ahead of Sunak’s big speech, with Sir Lindsay telling the House that ministers used to “walk” if they inquired about a budget.

The break with tradition – deemed “unacceptable” and “rude” by the president – also became a feature during the pandemic, with a series of announcements made at press conferences rather than in Parliament.

A spokesman for No 10 said he “recognized the importance of parliamentary scrutiny” and “always listen very carefully to the president”.

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Multimedia caption, Sir Lindsay Hoyle says it is “not acceptable” for ministers to give information to the media in front of Parliament.

The policies already unveiled by the chancellor’s budget include:

  • £ 6.9 billion for English city regions to spend on train, tram, bus and bicycle projects, including the £ 4.2 billion pledged in 2019 along with the bus funding announced by the Prime Minister in 2020
  • £ 5.9 billion for NHS England to address backlog of people waiting for tests and scans
  • An increase in the National Living Wage from £ 8.91 per hour to £ 9.50, which will take effect April 1st
  • £ 2.6 billion to be spent to create 30,000 new school places for children with special educational needs and disabilities
  • £ 1.6 billion over three years to implement new T levels for 16-19 year olds and £ 550 million for adult skills in England

You can read more about the announcements the government has already made here.

Mr. Sunak will announce the rest of his plans after the Prime Minister’s questions around 12:30 BST on Wednesday.

Whisper it. After the economy took a hit during the pandemic, could the Chancellor tomorrow actually be in a much happier political mood than he could have predicted?

During the budget warm-up in recent days, Rishi Sunak has already pledged around £ 20bn more spending, as well as announcing how some of the already promised money will be split.

Wait a second though. Specifically, there is no guarantee that unblocking the wages of 2.5 million workers in England will mean they will receive wage increases that are not eroded by inflation.

The same goes for hikes for low-paid workers, and universal credit cuts will also decrease.

After giving all of us delightful photos of him and his Labrador, Nova, and of him at work in his sportswear, Rishi Sunak wants to give the political impression that he is a chancellor we can all be comfortable with – be careful with ours. money, but not afraid to spend it on things that matter, who has the modern Tory instinct, but will not abandon party traditions.

But remember that Budget warm-ups are just that. Although there have already been many announcements, however carefully thought out and selected the photographs of the preparation, what matters is what it actually says at lunchtime on Wednesday.

What matters are the numbers – what’s in white on black – in the end.

Read more from Laura here.

On the eve of her speech, Labor Shadow Chancellor Rachel Reeves appealed to the government to create “a more resilient economy and take the pressure off workers.”

He said that if Labor were in power, “they would ease the burden on households by cutting VAT on household energy bills immediately for six months.”

“And we wouldn’t raise taxes on British workers and businesses, while the online giants get by without paying their fair share,” he added.

There were no more announcements from Sunak the night before his speech, but in a statement he said: “[This] Budget begins the preparation work for a new post-Covid economy.

“An economy of higher wages, higher skills and increasing productivity. Strong public services, vibrant communities and safer streets.”

“An economy fit for a new era of optimism. This is the strongest economy of the future.”

Related topics

  • Lindsay Hoyle
  • Rishi Sunak
  • Budget 2021
  • NHS

More on this story

  • Public sector workers have decided to raise the salary – Sunak

    Published
    5 hours ago

Read More about Politics News here.

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