Chancellor Sajid Javid has announced that a one-year Spending Review will be carried out in September, in order to provide government departments with ‘financial clarity’ ahead of Brexit.
According to the Chancellor, a one-year budget allocation would allow civil servants to simultaneously press ahead with improvements to public services and prepare for Brexit, which is currently set to take place on 31 October.
Commenting on the September Spending Review, the Chancellor said: ‘The Prime Minister and I have asked for a fast-tracked spending round for September to set departmental budgets for next year. This will clear the ground ahead of Brexit, while delivering on people’s priorities.’
Meanwhile, the Institute for Fiscal Studies (IFS) said: ‘The ongoing uncertainty surrounding the nature of the UK’s departure from, and future relationship with, the EU means that the outlook for the UK economy is currently highly uncertain.
‘Given that, setting departmental budgets for just one year is understandable, and leaves the government more flexibility to respond to future developments.’
The government intends to carry out a three-year Spending Review in 2020.