Spending Review Summary

Chancellor Rishi Sunak has set out what the UK government will spend on health, education, transport and other public services next year.


In his statement, he also briefed MPs about the state of the UK economy, which will have contracted 11.3% in 2020.



Public sector pay
  • Millions of public sector workers will see their pay frozen next year except for more than 1 million NHS workers or workers earning less than £24,000 a year, who will get a minimum £250 increase
  • National Living wage to rise by 2.2% to £8.91 an hour with 23 and 24-year olds will qualify for living wage for first time


Health and social care
  • £18bn for Covid-19 testing, PPE and vaccines
  • An extra £3bn for the NHS in England
  • £1.5bn to ease existing pressures this winter
  • £1bn to tackle treatment backlogs and enable delayed operations to go ahead
  • £500m for mental health services in England
  • £325m to replace ageing diagnostic equipment like MRI and CT scanners
  • £300m extra grant funding for councils for social care


Employment and business
  • A new £4.6bn package to help people back to work
  • £2.6bn for Restart scheme to support those out of work for 12 months
  • £1.6bn for the Kickstart scheme to subsidise jobs for young people
  • £375m skills package, including £138m to provide Lifetime Skills Guarantee
  • New £4bn "levelling up" fund to finance local infrastructure improvement projects
  • New UK infrastructure investment bank to be established in North of England


International aid and defence
  • Overseas aid budget to be cut from 0.7% to 0.5% of total national income
  • Will see reduction of about £5bn in support for tackling global poverty
  • A multi-billion-pound increase in annual defence spending over the next four years, creating 40,000 jobs


Schools, transport, crime and councils
  • £2.2bn extra for schools in England, representing 2.2% increase per pupil
  • An extra £2bn for public transport, including subsidies for the rail network
  • £3bn in extra funding for local authorities, representing a 4.5% increase in spending power
  • £250m for councils to tackle rough sleeping
  • £4bn over four years to provide 18,000 new prison places
  • More than £400m to recruit 6,000 new police officers by the end of 2022