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Brexit nearly ignored in Chancellor's budget as focus turned to coronavirus pandemic recovery

Chancellor Rishi Sunak had the unenviable task of delivering a spending statement that was both optimistic and realistic at the same time.

The issue overshadowing everything was, of course, the cost of the coronavirus crisis - not just the historic spending but the funding anticipated.

Chancellor Rishi Sunak
Chancellor Rishi Sunak

Not far behind was the shadow of Brexit - which strangely did not get much attention - and the prospect of a no-deal plunging the UK into even higher levels of debt.

Like all Chancellors he tried to sugar the pill with some additional promises in the direction of businesses, councils and young people.

The public finances remain in a precarious situation, largely because of the corona crisis; some of the figures are eye-watering. The one that was most striking was the £394bn that the government is spending this year to get the country through the pandemic.

There was some equally glum news on employment rates, with the number of those out of work rising to 2.6 million by the second quarter of 2021.

MPs were told the economy is predicted to contract by 11.3% and grow by 5.5% next year and 6.6% in 2022.

The government is spending £394bn this year to get the country through the pandemic.
The government is spending £394bn this year to get the country through the pandemic.

Some of the new announcements the Chancellor made sounded positive but as always the devil will be in the detail.

What sounded like a promise was made to councils about their parlous financial situation with an announcement the government would give local authorities flexibility when it came to the council tax and the social care precept.

There was no elucidation of what this meant, giving rise to the suspicion that it is likely to amount to a lifting of the current cap on increases rather than the government itself giving hard-up councils a handout.

If so, it will be interesting to see how Kent County Council responds; much as it needs extra funding the upcoming election next May means it has a rather tricky conundrum.

As to the NHS, there was a restatement of the government's commitment to build 40 new hospitals but no timetable and a pledge to maintain a pay rise for NHS staff but not for all public sector workers.

The Chancellor said that the country faced an economic emergency and a recovery plan was in place.

There is likely to be agreement about the former but questions about whether the government has got the right rescue package remain.

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