UK finance minister to lay out spending plan amid possibility of snap election
UK Finance Minister Sajid Javid will unveil a one-year spending plan in parliament today, which is expected to include a $4.3 billion commitment to education, health services and the police force.
Additionally, Mr Javid has promised to keep to existing fiscal rules requiring that structural borrowing is below 2% of GDP in 2020-21 and that government debt falls as a share of the economy.
While Prime Minister Boris Johnson’s government is preparing for an increasingly likely no-deal Brexit, many analysts view today’s announcement as being politically motivated. According to the Institute for Fiscal Studies, a disruptive no-deal Brexit could put a 30 billion-pound hold in public finances.
Indeed, if Mr Johnson were to lose a potential no-confidence motion on October 14, his government will have just 14 days to hold a second vote in which it must secure majority support. If unable to regain support, Mr Johnson will face a general election—where a $4.3 billion pledge to boost essential services will be a handy rallying cry.
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