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Brexit: Sajid Javid unveils spending review as government reels from defeat in vote – live news Brexit: Sajid Javid unveils spending review as government reels from defeat in vote – live news
(32 minutes later)
Javid goes on: McDonnell says a full fiscal event would have meant new economic forecasts.
As I turn to the details of today’s announcement. Instead, this is a sham spending review, he says.
That gets a cheer from Labour MPs, who feel much the same way as Dan Sabbagh. (See 1.16pm.) He says Javid is using “headroom” (an option to increase spending) that he knows has disappeared.
Javid says total spending next year will rise by £30.4bn. John McDonnell, the shadow chancellor, is responding to Javid.
https://twitter.com/hmtreasury/status/1169223218646999040 He welcomes Javid to his new job. But he says after that speech, he is starting to miss the old one.
“Extra funds take the real increase in day-to-day spending to £13.8bn, or 4.1%. That means I’m delivering the fastest increase in day-to-day spending for 15 years.” @SajidJavid #SpendingRound pic.twitter.com/6ILw8TduHl He says his own father was a bus driver too. But he says that is probably all they have in common.
Education was a lifeline for him, he says. He says the speech was “a compendium of meaningless platitudes”.
And he says the NHS cared for his father in his final days. He says Javid should take it back to the person who wrote it - Dominic Cummings.
It is getting worse. He says Boris Johnson is shouting at him now. He tells Johnson that the last time Johnson shouted at someone, they had to call the police, he said.
Javid says: He criticises Cummings for sacking a Treasury aide, and having her escorted out of No 10 by an armed police officer.
Health and education are not just the names of departments. He says this was not a proper spending review. It was “grubby electioneering”, he says. And it was “straight out of the Lynton Crosby handbook of opinion poll politics”.
From my colleague Dan Sabbagh, who is spot on. Javid says he is now turning to the departments that have not had their departments protected in recent years.
Sajid Javid has been on his feet for 15 odd minutes and barely announced anything yet. https://t.co/tqAcpDdK14 They have had a difficult time, he says.
Normally, at this stage in a statement like this, the chancellor would have moved onto substance. Javid says no government department will have its budget cut next year. He says that is what he means by the end of austerity.
Javid says he wants faster internet services. Javid praises the UK’s record on diversity.
He wants better infrastructure. He wants to build in every region. From the motor highway to the information superhighway, he wants an infrastructure revolution. And the UK’s values of openness and tolerance are nowhere better on display than in the aid budget, he says.
Javid says he will review the government’s fiscal framework. He says the MoD budget will go up by £2.2bn - an increase of 2.6%.
Javid says he will review the fiscal rules the government follows. “An additional £2.2bn of funding for the @DefenceHQ, a real terms increase of 2.6% for their budget next year. Increasing again the share of our national income we spend on defence and national security.” @SajidJavid #SpendingRound pic.twitter.com/Ez08GpQ29T
Javid says the cost of government borrowing has fallen below 1% across all maturities. He announces extra funding for the Normandy Memorial Trust, which commemorates D-day.
He says his judgment is that he can invest more in the economy. Javid says that for too long the UK has let its trading relationships wither.
But that does not mean he can borrow more permanently. That is a disgrace, he says.
He says the country still needs to live within its means. And he will still need to make difficult choices. He says there will be 14 upgraded diplomatic posts. There will be an extra £60m for the GREAT marketing campaign.
Javid says he is giving certainty to departments about their budgets for next year. “We support diplomacy, with £90 million of funding for 1,000 new diplomats and overseas staff, and 14 new and upgraded diplomatic posts.” @SajidJavid #SpendingRound pic.twitter.com/aLyzB0gSKv
He is “clearing the decks” ahead of Brexit, he says. And the government will spend over £500m on future sports events.
(Most MP will assume he means clearing the decks ahead of an election.) “In 2022, we’ll host the Commonwealth Games in Birmingham. Today I can confirm the government’s total commitment to this celebration of sport will be over half a billion pounds.” #SpendingRound pic.twitter.com/BhpkcvIT1e
Javid says the UK is the number one investment in Europe for inward investment. Javid says the devolved administrations will get the biggest spending settlement for a decade.
It is a global hub for businesses, he says. Javid says he will allocate an extra £160m for Scottish farmers. They have lost out through a previous policy, he says.
The UK is second only to the US in terms of Nobel prize winners, he says. Javid jokes that people may not know that his father was a bus driver.
He says an open, free-market economy is under threat. It is not under threat from the people on the other side of the Channel, but from the people on the other side of the chamber. The number one threat to business is not Brexit, but Labour. He will spend £200m on transforming bus services, he says.
John Bercow, the Speaker, says what Javid is saying is “unseemly”. He says that he says this “with a heavy heart”. He says Javid is veering into matters unrelated to the spending round, which is supposed to be the subject of his statement. He says he wants Javid to adjust his remarks, so that he focuses on the spending round. He says no one is going to tell him what Commons procedures are. “More than £200m to transform bus services around the country. We’re funding ultra-low emissions buses and will trial new, on-demand services to respond to passenger needs in real time.” @SajidJavid #SpendingRound pic.twitter.com/xmPkYab1OH
Bercow reprimands Javid for using his spending round statement to make a gratuitous attack on Labour. Javid says pupils need support even after the school day is over.
Bercow has often reprimanded ministers at the despatch box, but I can’t recall any example of him giving such a severe ticking off to a chancellor during a major financial announcement. Today he is asking the culture department to develop plans for a youth investment fund, including more youth centres.
Ken Clarke, the former Tory chancellor and father of the house, rises to make a point of order. Javid says government will develop plans for a youth investment fund to pay for more youth centres.
John Bercow, the speaker, says the chancellor’s opening remarks were out of order (because the spending review is not really about Brexit). But he exercised a degree of latitude, he says. Javid says he would not be here as chancellor if he had not been to a further education college.
He says Javid consulted him yesterday about the length of his statement. Bercow says he accepted the Brexit remarks did not make it over-long. He says FE will get an extra £400m next year.
Javid says he is today announcing an extra £2bn for no-deal planning. Javid says he will increase school spending by £7.1bn by 2022-23.
“Within my first few days as Chancellor, I provided £2.1 billion of extra funding for Brexit and No Deal preparedness and today I can announce that we provide a further £2bn for Brexit delivery next year as well.” @SajidJavid #SpendingRound pic.twitter.com/f7SosKCUHA “A good school, inspirational teachers, are the most effective engine for social mobility that there is. That’s why today we are delivering on our pledge to increase school spending by £7.1bn by 2022-23.” - @SajidJavid #SpendingRound pic.twitter.com/uOJXqUWGiw
Every secondary school will get a minimum £5,000 per pupil next year, he says.
He says teacher starting salaries will rise to £30,000 by 2022-23.
“And we’ll provide over £700m more to support children and young people with special educational needs next year – an 11% increase compared to last year.” - @SajidJavid #SpendingRound
He says most departments will be funded for just one year today, but today’s announcement includes a three-year settlement for schools.
Javid turns to the environment.
“Leaving the EU provides an opportunity to set world leading environmental standards, and we’re giving @DefraGovUK £432m of funding to do so. We’re providing £30m of new money to tackle the crisis in our air quality and another £30m for biodiversity.” #SpendingRound pic.twitter.com/mJrcWsaf07
He says this will be the first government to leave the environment in a better state than it found it.
Javid announces £54m extra to reduce homelessness and rough sleeping.
“On any given night, too many people are sleeping rough on our streets. The human cost of that is too high. Today we do more - with £54m of new funding to reduce homelessness and rough sleeping, taking it to a total funding to £422m.” #SpendingRound pic.twitter.com/fOJNLQobYH
Javid turns to the NHS, and announces an extra £6.2bn in funding for next year.
“£6.2bn increase in NHS funding next year. We’re investing more in training & professional development for our doctors & nurses, over £2bn of new capital funding – starting with an upgrade to 20 hospitals this year, & £250m for ground breaking new AI technologies.” #SpendingRound pic.twitter.com/q7yLRQ5bO6
He also announces an extra £1.5bn for councils for social care next year.
Javid announces a 5% increase for the Ministry of Justice.
Taken together, his announcements will dramatically improve the functioning of the criminal justice system, he says.
“A 5% real terms increase in the resource budget for @MoJGovUK - an increase in their capital budget to £620m next year and an extra £80m for the Crown Prosecution Service." @SajidJavid #SpendingRound pic.twitter.com/vVROOEKDFG
Javid says there have been more attacks on mosques and synagogues this year.
So he will double the places of worship fund next year.
Javid announces an extra £30m to tackle online child exploitation.
Javid says his brother is a police officer. He knows how important policing is.
Javid announces 6.3% increase Home Office spending. He says that is the biggest increase for 15 years, and will help to finance the plans to hire 20,000 extra police officers.