UK

Government spending review dropped amid pandemic uncertainty

The UK government has dropped its long-term Comprehensive Spending Review amid economic uncertainty caused by the Covid-19 pandemic.

The Treasury said it was “the right thing” at the moment to “focus entirely” on protecting jobs and responding to the crisis.

Chancellor Rishi Sunak will instead set out a one-year review in late November.

And he is due to address the House of Commons on Thursday.

Economists had warned that the pandemic meant setting longer-term spending targets would prove difficult.

Last month, Mr Sunak scrapped plans for an autumn Budget in favour of the review, which sets out how much each government department can spend and does not include changes to taxation.

In its latest figures, the Office for National Statistics said the UK economy was still 9.2% smaller than in February, before lockdown began.

BBC News

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