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Public Expenditure

Question for Treasury

UIN 169883, tabled on 16 March 2021

To ask the Chancellor of the Exchequer, whether it is his policy to maintain the planned (a) NHS, (b) Department for Work and Pensions and (c) Scottish Government allocations in real terms over the OBR forecast periods irrespective of inflation levels.

Answered on

22 March 2021

As set out at Budget 2021, the government has maintained the Budget 2020 assumption of 2.1% real terms increases per year for core resource DEL spending after 2021-22, reflecting the latest OBR deflators. For capital DEL spending, the government has maintained the Budget 2020 assumption consistent with delivering over £600 billion in gross public sector investment over the next five years, the highest sustained levels of public sector net investment (PSNI) as a proportion of GDP since the late 1970s.

Specific allocations beyond 2021-22 are a matter for the Spending Review later this year, where the government will set future departmental resource DEL and capital DEL budgets as well as devolved administrations’ block grants. However, the government has already committed to a historic long-term settlement for the NHS with a cash increase of £33.9 billion a year by 2023-24. Further details on the Spending Review will be set out in due course.

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