Chancellor, Rishi Sunak, is unveiling the government's spending plans for the coming year. The Spending Review will include details on public sector pay, NHS funding and money for the devolved administrations in Northern Ireland, Scotland and Wales. Rishi will also set out the extent of the damage done to the UK economy by the Coronavirus pandemic.
The government had intended to use the Spending Review to set out its plans for the next three years, however this was reduced to just one year due to the economic turmoil caused by Covid-19. The difficult financial backdrop will dominate this year's review with the economy projected to be 10% smaller than it was pre-virus.
CEO, Advertising Association, Stephen Woodford, has issued to following statement:
“Today’s spending review announcement with its focus on jobs is to be welcomed. Employment and growth must be prioritised after the massive impact of Coronavirus on our economy and our impending departure from the Single Market and Customs Union. With interest rates so low, the government has a historic opportunity to invest in badly needed infrastructure that could be transformational in terms of the levelling up agenda. Whilst we understand the Chancellor has chosen a one-year spending settlement at this stage, we hope for early clarity on the longer three-year review to avoid adding to the uncertainty already hanging over the wider economy."
Stephen continued: “Many industries, including advertising, have been hit hard by the lockdown and the continuing restraints on consumer behaviour, while necessary from a public health perspective, remain a handbrake on the economy. Advertising is an important economic lever to support the recovery, delivering – as it does – a £6 return to GDP for every £1 invested. This is why we have developed a series of industry proposals for Government which can assist our country in our recovery from the pandemic. These include a tax credit for advertising as well as a programme to boost skills in industry, so that our workforce is equipped for the future jobs market with the necessary skillset to handle the structural changes to our economy.”