Spending Review 2020

Lord Bhatia Excerpts

Thursday 3rd December 2020 Grand Committee

[Lord Bhatia (Non-Afl) [V]]

My Lords, on 25 November 2020, the Chancellor concluded the spending review. It contained an update on the amount of funding to be given to public services during the financial year 2020-21, as well as a new set of departmental budgets for the next financial year, 2021-22.

Although the decision to limit this year’s spending review to a single year rather than the usual three or four years is sensible, setting budgets for only one year can deprive public services leaders of the certainty they need to plan effectively and efficiently, and arguably adds to the fog of uncertainty already hanging over the wider economy. It is therefore welcome that the Government have indicated that exceptions will be made where multi-year budgets are arguably needed most, notably in funding for major investment projects.

Although this spending review will be more short-term than usual, there are still a number of important things to look out for. My biggest concern is the decision to reduce overseas aid. We have heard what some previous Prime Ministers had to say on this subject. I sincerely hope that the Government reconsider and stick to a contribution of 0.7%.