Chancellor makes funding pledge for COVID-19 recovery

Chancellor Rishi Sunak has announced several funding initiatives to support the economy in its recovery from the effects of COVID-19.

The Summer Economic Update covered a wide range of economic sectors, including several initiatives. Key to the Chancellor’s plans is the Plan for Jobs, giving much greater detail on investments and support to be made available. These included*:

  • £1.05 billion in 2020-21 for NHS critical maintenance and A&E capacity across England
  • Up to £250 million in 2020-21 to make progress on replacing outdated mental health dormitories with 1,300 single bedrooms across 25 mental health providers in England
  • A further £200 million for the Health Infrastructure Plan to accelerate a number of the 40 new hospital building projects across England
  • £31.9 billion of support for health services, including:
    • Over £15 billion for PPE procurement
    • £10 billion for the Government’s Test, Trace, Contain and Enable programme
    • Over £1 billion to procure additional ventilators to support the NHS
    • A further £5.5 billion on: the use of the independent sector’s health facilities; enhancing the NHS discharge process; delivering medicines to those who are vulnerable and shielding; keeping pharmacies and GP practices open during bank holidays so healthcare facilities can stay available to those that need them; and funding for domestic vaccines R&D and manufacturing
  • £4.7 billion funding to local government. This includes £3.7 billion to support pressure on social care in local government, deliver additional support to vulnerable people and continue to respond to the coronavirus pandemic; and £600 million additional funding to support infection control in care homes

*Points summarised by EMIG, the Ethical Medicines Industry Group

In the Plan for Jobs, it is explained that:

“The immediate focus for the government’s economic and fiscal strategy is now on ensuring that it continues to support workers and businesses as the UK recovers from the COVID-19 pandemic. The targeted and temporary support set out in this update in particular aims to support employment through the recovery period, and by doing so will help to minimise structural damage to the economy and public finances.”

Read the Chancellor’s Summer Economic Update and the Plan for Jobs on the UK Government web pages.

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Published on 9. July 2020 in News, News UK