The Government will commit £50 billion to improve national infrastructure, the science sector and education in order to drive economic growth, the Chancellor George Osborne has announced in the 2013 Spending Review.
Setting out his spending plans for 2015-16, the Chancellor said that reform, growth and fairness were the main priorities of this year's Review that will 'turn Britain around'.
There are also plans to cut Government spending by a further £11.5 billion.
Key points of the Spending Review include:
- Total Government spending to reach £745 billion
- Aims to reduce spending by 11.5 billion
- A one per cent cap on public sector pay rises.
Key announcements affecting businesses:
- Spending on long-term infrastructure projects including transport, broadband and flood defences
- Investment of £9.5 billion in the UK's transport network
- Maintaining funding for science at £4.6 billion
- A consultation on the reform of funding for apprenticeships
- £5.3 billion to enable investment in renewable energy
- A £2 billion growth fund for local enterprise partnerships.
Key announcements affecting personal finances:
- A cap on welfare and benefits spending
- A council tax freeze for the next two years
- A £3 billion capital investment in affordable housing
- A stop on winter fuel payments to expatriates in hot countries.
