Financial Report 24/10/20
21/10/2020 – Government 3 year spending plan abandoned
The government had intended to set out its departmental spending plans for the next 3 years however, Rishi Sunak has advised No. 10 that this review should be scrapped in favour of a 1 year review. This is due to the economic uncertainty caused by COVID-19 and is the result of intensive negotiations over the past week trying to find a compromise of time scales. The government intend to focus entirely on the response to the virus and to supporting jobs, but Sunak has said that some areas of public spending “crucial to our economic recovery” would have longer term plans developed.
21/10/2020 – Resumption of post-Brexit trade deals strengthens value of the pound
After Britain agreed to remove its block on negotiations, the GBP to USD exchange rate has risen to its highest value since early September 2019. The EU and British government will now enter an intense final phase of negotiations with both sides agreeing to resume face to face talks. The intention is for negotiations to take place every day until a deal is reached, with the first day of negotiations beginning on Thursday 22nd October 2020.
20/10/2020 – Tier 3 imposed on Greater Manchester despite no financial deal
Failed negotiations between Andy Burnham, the mayor for Greater Manchester, and the government have resulted in Greater Manchester having the tightest restrictions imposed upon them without a deal in place. The government has agreed to provide a £60million package to the region to help businesses which are affected by the new restrictions, despite Burnham’s original request for £90million. This has resulted in a £30million difference between what Manchester believes it requires to support the lowest income households and the financial support it will receive, but the government insist this is in line with the support other locked-down regions have received.
Round up based on news articles from the Financial Times with data from the National Audit Office and National Office for Statistics.
This round-up is not linked to and does not reflect the views of any companies with which Laura Dench or Elliott MacCallum are associated.
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