Philip Hammond said in today’s Spring Statement that this will be used to set departmental budgets beyond the NHS.
He said the review will “reflect the public’s priorities between areas like social care, local government, schools, police, defence and the environment”.
Hammond also delivered “good news” on borrowing figures, announcing that borrowing will be 1.1% of GDP, £3bn lower than forecast at the Autumn Budget.
“Looking forward, borrowing will fall from £29.3bn in 2019-20, then £21.2bn, £17.6bn, £14.4bn and finally £13.5bn in 2023-24 – its lowest level in 22 years,” he said.
The chancellor added that the government remains on track to meet its fiscal target early.
However, Hammond cut growth expectations for this year, now expecting 1.2% compared to October’s forecast of 1.6%. Next year’s forecast remains unchanged at 1.4%, but then for the final three years he expects 1.6% each year.
