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Government delays full Spending Review until 2020

By Rachel Lawler
 
Sajid Javid
The Chancellor has announced that this year’s Spending Review will be “fast-tracked”, covering only the next year in a bid to focus on delivering Brexit.
 
Instead of the planned comprehensive Spending Review, which would have dictated budgets for the next three years, the Treasury will instead conduct an “accelerated exercise”.
 
This “Spending Round” is expected to complete in September and will set “day-to-day spending budgets" for 2020–21.
 
People's priorities
Chancellor Sajid Javid said that the review would “support commitments” made by the new Prime Minister, including “his ambition for additional funding for schools”.
 
Javid said: “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.”
 
£662m funding shortfall
Neil Leitch, chief executive of the Alliance said: “While the NHS, police and schools are clearly in need of extra cash, we hope that the Chancellor will find money in the 2020-21 spending round to make up the £662 million shortfall in early years funding.
 
“The sector cannot carry on for yet another year delivering the government’s flagship childcare schemes based on 2015 cost analysis.
 
“We will undoubtedly see further closures, and those childcare providers who do manage to stay open will be forced to charge parents more for private hours and for extras, or place restrictions on when parents can access funded places. The early years is a sector in financial crisis: the government knows it and can no longer afford to ignore it.”
 
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