On 25 November 2020, the Chancellor set out the Government’s Spending Review. Uniquely, this Spending Review will only cover a one year period amidst the economic difficulty caused by COVID-19. The Spending Review highlights the Government’s plans and policies for public spending and how this money will be allocated.
This blog will highlight the key points from the Review, focusing on how the plans will affect businesses and employees.
What has the Chancellor announced?
The Chancellor announced that protecting jobs and livelihoods is a priority and has allocated £4.6bn to help people get back to work.
These measures include:
- introduction of the Restart Scheme to support those who have been unemployed for a year. The scheme will help people find work through local partnerships and by offering training courses. £2.9bn will be spent across three years.
- the Kickstart Scheme, which is aimed at helping young people aged 16-24 find work by subsidising employment, will receive £1.6 billion of funding
- the national living wage will be increased to £8.91 per hour from 1 April 2021 and will be available to those aged 23 and over as opposed to 25 and over. Find out more about the current national living wage and the minimum wage.
- business rates multiplier will be frozen for 2021-22. This will reduce the extent to which business rates will increase in 2021, saving businesses in England £575 million over the next 5 years.
Earlier this year, the Chancellor announced the Kickstart Scheme. Read more on how Rocket Lawyer thinks this could benefit you.
How will employees in the public sector be affected?
The Government announced that public sector workers will see their pay frozen next year, however NHS staff and those earning under £24,000 a year are exempt from this.
Those earning under £24,000 a year will receive a pay rise of at least £250. For NHS workers, more than a million workers will receive a pay rise.
Find out about more Government schemes and funding available for you and your business.