Chancellor of the Exchequer Rishi Sunak opened his spending review in parliament earlier this afternoon telling MPs “the health emergency is not yet over” and somewhat alarmingly that the economic emergency had “only just begun”.
He swiftly followed saying that his immediate priorities will continue to be in protecting jobs, as well has helping businesses and supporting public services.
Mr Sunak detailed government total spending on Covid-19 to date of an eye watering £280 billion, adding that underlying debt is forecast to reach 97.5% of GDP in 2025-26.
He warned that growth of the economy would be slow to return and he stressed that with growth returning to UK, economic output is not expected to match pre pandemic crisis levels until the fourth quarter of 2022.
The chancellor then explained that OBR predictions also show levels of unemployment to rise to a peak of 7.5%, 2.6 million people in the second quarter of 2021. Once again the Chancellor underlined that he could not protect every job.
There was no specific mention of hospitality other than when he recounted the myriad of help given to hospitality to date.
The delivery of the spending review was executed with balanced gravitas that once again elevates his standing in parliament and in public. The polished presentation however does include several details that will send a shiver down the spine of many business owners and FDs in hospitality. Not least the news that the economic emergency has only just begun.
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Hospitality & Catering News: Chancellor’s spending review warns the economic emergency has only just begun – 25 November 2020 – BChancellor’s spending review warns the economic emergency has only just begun.
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