[London 4th Reuters]-British finance minister Javid announced the spending plan for 2020/21 in a parliamentary speech scheduled for the 4th, and is "high priority for the public" such as education, medical care and police Shows a policy to increase spending. The speech is scheduled for around 1200 GMT (9 pm Japan time) in response to the general election suggested by Prime Minister Johnson, while the confrontation with Parliament over the European Union (EU) Brexit is growing.
Prime Minister Johnson stresses that it will be the most ambitious spending plan in the past decade, but Javid's finance minister has shown a policy of complying with the previous government's fiscal discipline.
The finance minister wrote last week in a contribution to the British Daily Telegraph: “Thanks to the efforts of the British people over the last decade, we can expand spending in the priority areas of the public without breaking the rules on spending. Increase spending in some major sectors such as hospitals and police. "
The UK budget deficit, which reached about 10% of gross domestic product (GDP) in 2010, has shrunk to just over 1%, and there is room for government borrowing.
On the other hand, the Resolution Foundation of Thinktank must comply with the previous government's fiscal discipline of keeping borrowings to less than 2% of GDP based on the economic downturn, the recent increase in public debt, and Mr. Johnson's commitment to expand spending. He points out that it may disappear.
Last week, Prime Minister Johnson said that he would increase the school budget and secure a budget to increase 20,000 police officers and improve 20 hospitals.
In his mid- to long-term fiscal plan scheduled for the end of the year, Mr. Javid has indicated that he will consider changing the fiscal rules to increase borrowing. The medium- to long-term fiscal plan is likely to be announced after the planned EU departure date on October 31 when the future of the domestic economy becomes clearer.
On the 3rd, the finance minister announced a plan to secure a budget of 2 billion pounds to support the border guards and port facilities in preparation for the EU departure.