End of austerity? Chancellor fast-tracks spending review ahead of Brexit deadline
Sajid Javid is making his first major intervention as chancellor, with a move that could turn on the spending taps in Whitehall.
The Treasury has begun a fast-tracked spending round for all government departments, which will be completed in September, well in advance of the looming Brexit deadline of 31 October.
Once complete, departments and devolved administrations will be given “financial certainty” for 2020/2021 budgets. It is being rushed through “to ensure departments can focus on delivering Brexit”.
Read more: Hammond says ending austerity will not mean spending splurge
It will make provision for commitments already made by Prime Minister Boris Johnson including the recruitment of 20,000 extra police officers, additional funding for schools and the NHS. It is expected to include other new spending announcements.
The government is still bound by existing fiscal rules, to keep borrowing under control and debt falling. However, with the former chancellor Philip Hammond no longer able to exercise his trademark caution on spending, it could bring an end to austerity – something first heralded in 2018’s Budget.
Javid said: “We will get Brexit done by October 31 and put our country on the road to a brighter future.
“The Prime Minister and I have asked for a fast-tracked spending round for September to set departmental budgets for next year.
“This will clear the ground ahead of Brexit while delivering on people’s priorities.”
Read more: We don’t need Chequers to end austerity
Chief secretary to the Treasury Rishi Sunak added “This spending round will give financial certainty to departments’ plans for next year.
“We will invest in the priority areas of schools and policing, while delivering our promises on the NHS, defence and Official Development Assistance (ODA).”
The next multi-year spending review will now be carried out in 2020.