Chancellor Sajid Javid, revealing his new Spending Review, said that ‘austerity is over’ announcing significant increases in spending across most government departments.
He also claimed that the increases showed that although cuts over the past decade had been tough, they had ‘paid off’.
The Chancellor stated: ‘No department will be cut next year. Every single department had its budget for day-to-day spending increased at least in line with inflation. That’s what I mean by the end of austerity.’
Mr Javid announced an additional £2 billion in Brexit preparation funding, while promising there will be more support to ensure businesses are ready. He also said the Treasury would work with the Bank of England to co-ordinate a fiscal and monetary response for the UK economy.
Quote from Nigel Holland:
“These increases in spending should be taken with a grain of salt, with Brexit on the horizon and the UKs economy uncertain these promises may prove unsustainable.”