The Chancellor used last week’s Spring Statement to announce the launch of a three-year Spending Review, to be published alongside this autumn’s Budget, so long as a Brexit Deal can be agreed in the coming days. If a deal is agreed, the Chancellor promised a deal dividend made up of the economic boost from the release of pent-up business confidence, however the Chancellor also stressed that a no deal Brexit “would deliver a significant short to medium term reduction in the productive capacity of the British economy”.

The spending review will ensure “investment is focussed to deliver the greatest impact on productivity”, with an investment strategy benefiting the whole of the UK. A new National Infrastructure Strategy will accompany the Spending Review.

On skills

On skills, the Chancellor’s focus fell on “driving productivity across the income distribution, with the ultimate objective of ending low pay in the UK”, stressing that “the productivity agenda is, above all, about increasing the wages of the lowest paid”, before confirming Professor Arindrajit Dube will review the employment and productivity effects of minimum wage rates ahead of the Low Pay Commission setting its new remit from 2020, to help protect employment opportunities for lower paid workers.

On tax

On tax, the Government published the report of the Digital Competition Expert Panel, setting out recommendations to improve competition in the digital marketplace, so that the UK “remains a great place to do digital business” but where tech giants pay fair tax, where competition policy works in consumers’ interests and where the public are protected from online harms.

Oxford-Cambridge Arc

Finally, the Government published its ambition for the Oxford-Cambridge Arc alongside the Spring Statement, restating the target of one million additional homes by 2050 and confirming the ambition to help the Arc reach its full economic potential to transform into a “world-leading economic area”.

The Chancellor’s speech can be found here: https://www.gov.uk/government/speeches/spring-statement-2019-philip-hammonds-speech

Other supporting documents can be accessed from this page: https://www.gov.uk/government/news/spring-statement-2019-what-you-need-to-know

The Government’s ambition for the Oxford-Cambridge Arc can be found here: https://www.gov.uk/government/publications/the-oxford-cambridge-arc-government-ambition-and-joint-declaration-between-government-and-local-partners