Home Business News Chancellor promises spending frenzy of £15bn in Budget speech, but inflation ‘is likely to rise further’

Chancellor promises spending frenzy of £15bn in Budget speech, but inflation ‘is likely to rise further’

by LLB political Reporter
27th Oct 21 1:13 pm

The Chancellor of the Exchequer Rishi Sunak has unveiled today that the government will spend billions of new spending.

Sunak said, “Today’s Budget begins the work of preparing for a new economy post-Covid.

“An economy of higher wages, higher skills, and rising productivity of strong public services, vibrant communities and safer streets.

“An economy fit for a new age of optimism. That is the stronger economy of the future.”

The Chancellor said the economy is expected to grow by 6.5% this year, which is twice as the prediction by the Office for Budget Responsibility (OBR) forecast in March.

Sunak warned that inflation “is likely to rise further” and in September it was 3.1% which could rise to an average of 4% in 2022.

The Chancellor told the Commons, “It would be irresponsible for anyone to pretend that we can solve this overnight.”

The OBR growth forecast which has just been released reveals that growth has in fact fallen for three of the four following years.

The OBR predicts that the economy will grow to 7.3%by March 2022 and by October next year the expect it will fall to 6.0%, then to 2.1% towards the end of 2023.

Policies that the Chancellor has already revealed in his Budget includes that NHS England are to receive £5.9bn to tackle the backlog.

Sunak also announced that there will b £1.8bn to build around 160,000 “greener homes” on derelict or unused land, with £9m on “pocket parks” which is about the size of a tennis court,  to create more green space in England.

City regions across England will receive a share of £6.9bn to improve public transport, whilst the The National Living wage will rise from 1 April from £8.91 per hour to £9.50.

There will be 2.6bn spent on creating 30,000 new school places for children with special educational needs and disabilities and £1.6bn over three years to roll out new T-levels for 16 to 19-year-olds and £550m for adult skills in England.

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