The Chancellor has set the date for his next budget, when Government spending plans for the next three years will be revealed.
The results of the Spending Review and plans for public spending will be announced on 27October.
The Chancellor will announce the UK Government’s spending priorities for the remainder of this Parliament, with the three-year review setting out central government departments’ resource and capital budgets for 2022-23 to 2024-25 and the devolved administrations’ block grants for the same period.
Together with the additional funding for health and social care announced in early September, core departmental spending will grow in real terms at nearly 4% per year on average over this Parliament. By 2024-25 core departmental spending will be £140 billion more per year in cash terms than at the start of the Parliament.
As part of his announcement, the Chancellor set the envelope for spending over the next three years:
- Core day-to-day departmental spending will follow the path set out at Spring Budget 2021.
- In total, day-to-day spending will increase to £440 billion by 2024-25, increasing by nearly £100 billion per year in cash terms over the life of this Parliament.
- A step-change in capital investment will be delivered, as set out at Budget 2021. This will see an investment of over £600 billion over five years, the highest sustained level of public sector net investment as a proportion of GDP since the late 1970s.
With ambitious plans for an infrastructure and innovation revolution, investment will see more contracts brought to market. So, this is an ideal time to look at your plans to supply to the public sector.
Make sure you have the right information and help prepare your bids with key information from Tracker.
The Chancellor of the Exchequer, Rishi Sunak, said: “Since the start of the pandemic, we’ve delivered on an unprecedented scale to protect people’s jobs and livelihoods.
“Despite the worst economic recession in 300 years, we have not only got people back into work through the Plan for Jobs but continued to deliver on the priorities of the British people.
“At the Spending Review later this year, I will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.”
Given the impact COVID-19 has had on the economy, the Chancellor wants to focus on ensuring every pound of taxpayer funding is well spent, to deliver the highest quality services to the public at the best value. Best value has been at the heart of public procurement for many years, and the latest NPPS [link to previous blog] has underpinned this, along with social value and green credentials. Improving and diversifying the supply chain is an important component in improving value as well as bringing innovation to the public sector.
Find out about new contract notices first and prepare your bids with tailored advice from Tracker. Start your free trial >