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Reeves to make statement on public finances today (1/2)

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  • Chancellor of the Exchequer Rachel Reeves will make a statement to parliament today (we have heard unconfirmed reports of 15:30BST) on the state of the public finances.
  • There are expected to be four strands to the announcement: first she is widely expected to state that there is a gap of around GBP20bln in the current year (i.e. FY24/25) funding plans - and blame this on the previous government. This follows a review that was set up as one of her first acts as Chancellor and looks through all of the departmental spending plans (the most up to date parts of which are not public - and generally have quite a long lag to be reflected in ONS data - but which should nevertheless have been included in OBR forecasts).
  • Second, she is expected to confirm that she will accept the independent pay review bodies' recommendations on public sector pay. Most notably this would include above-inflation (and higher-than-budgeted for) increases of 5.5% for workers such as doctors, nurses and teachers.
  • Third, she is likely to announce a number of immediate spending cuts (or pauses) - with the weekend media reporting that this is likely to be focused on large infrastructure projects and consultants including areas such as the plans to build 40 new hospitals by 2030, the London terminus to the HS2 rail scheme and the tunnel for the A303 road under Stonehenge.
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  • Chancellor of the Exchequer Rachel Reeves will make a statement to parliament today (we have heard unconfirmed reports of 15:30BST) on the state of the public finances.
  • There are expected to be four strands to the announcement: first she is widely expected to state that there is a gap of around GBP20bln in the current year (i.e. FY24/25) funding plans - and blame this on the previous government. This follows a review that was set up as one of her first acts as Chancellor and looks through all of the departmental spending plans (the most up to date parts of which are not public - and generally have quite a long lag to be reflected in ONS data - but which should nevertheless have been included in OBR forecasts).
  • Second, she is expected to confirm that she will accept the independent pay review bodies' recommendations on public sector pay. Most notably this would include above-inflation (and higher-than-budgeted for) increases of 5.5% for workers such as doctors, nurses and teachers.
  • Third, she is likely to announce a number of immediate spending cuts (or pauses) - with the weekend media reporting that this is likely to be focused on large infrastructure projects and consultants including areas such as the plans to build 40 new hospitals by 2030, the London terminus to the HS2 rail scheme and the tunnel for the A303 road under Stonehenge.