Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK plans 8 billion pounds of extra health and education spending

EconomyOct 23, 2021 23:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Britain's Chancellor of the Exchequer Rishi Sunak meets U.S. Treasury Secretary Janet Yellen (not pictured), in London, Britain June 3, 2021. REUTERS/Hannah McKay/File Photo

By David Milliken

LONDON (Reuters) -British finance minister Rishi Sunak plans a 5 billion pound ($6.9 billion) programme to fund health research and 3 billion pounds of extra funding for further education in next week's budget, finance ministry officials said late on Saturday.

The announcements, which include a raft of smaller spending decisions, follows news earlier in the day of 6.9 billion pounds for regional transport projects ahead of a major review of government spending over the next three years.

The transport investment is 1.5 billion pounds more than previously planned, as the government seeks to boost living standards outside London through its 'levelling-up' agenda.

"We want to make the UK the best place in the world to start, grow and invest in a business, as we continue to support enterprise, create jobs, and level up as we recover from the pandemic," Sunak said in a statement.

Sunak is expected to set fairly tight limits for most areas of day-to-day public spending in his budget on Wednesday, which will seek to lower public debt after a record surge in borrowing during the COVID-19 pandemic.

But unlike his predecessors' policy after the 2008-09 financial crisis, he will allow more leeway for long-term public investment designed to reward voters who backed Prime Minister Boris Johnson in December 2019's election.

Most of the education money will support 16- to 19-year-old students in England who are studying a new alternative qualification to the traditional school-leaving exams which are the normal pathway to university, the finance ministry said.

Some 550 million pounds will fund education and training for older adults, including numeracy skills and three- to four-month courses in areas such as digital skills, construction and roles in the rail and nuclear industries.

Johnson's government wants to promote apprenticeships and other alternatives to standard university degrees, which it believes offer poor job prospects for many students and do too little to tackle skills shortages in industry.

Britain's health ministry will receive 5 billion pounds over the next three years to fund research and development, including 2 billion pounds in 2024, which the finance ministry said was 57% more in cash terms than before the COVID-19 pandemic.

Sunak also plans to increase inward investment incentives by nearly a billion pounds to create a 1.4 billion pound fund.

More than 800 million pounds will be reserved for the electric car industry, while 350 million pounds will be used to attract life sciences manufacturing, the finance ministry said.

A further 700 million pounds would be spent on upgrading electronic border systems and replacing patrol boats used to combat smuggling and illegal migration, it added.

Separately, business groups gave a cautious welcome to the extension by six months of a lending programme for companies still struggling through the pandemic.

"The acid test for the scheme will be whether it is able to support the recovery by getting credit flowing to the firms who need it most," said Suren Thiru, head of economics at the British Chambers of Commerce. 

($1 = 0.7272 pounds)

UK plans 8 billion pounds of extra health and education spending
 

Related Articles

Global shares decline on Omicron uncertainty
Global shares decline on Omicron uncertainty By Reuters - Dec 02, 2021 2

By Matt Scuffham and Elizabeth Howcroft NEW YORK/LONDON (Reuters) - Global shares fell Thursday, reversing gains from the previous session as a lack of information about the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Len Smith
Len Smith Oct 24, 2021 17:52
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Empty promises by the tories. Party of the privileged few.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email