Chancellor-Public Spending To Grow, But Slower Than The Economy

Chancellor Jeremy Hunt: "...we are going to grow public spending – but we’re going to grow it slower than the economy. For the remaining two years of this Spending Review, we will protect the increases in departmental budgets we have already set out in cash terms."

• Hunt: "And we will then grow resource spending at 1% a year in real terms, in the three years that follow. Although departments will have to make efficiencies to deal with inflationary pressures in the next two years, this decision means overall spending in public services will continue to rise, in real terms, for the next five years."
• Hunt: "....the Prime Minister and I both recognise the need to increase defence spending. But before we make that commitment it is necessary to revise and update the Integrated Review, written as it was before the Ukraine invasion."
• Says defence spending will remain at at least 2% of GDP.
• Confirms no return to 0.7% of GNI target for overseas aid spending, remains at 0.5%.