Image source, HoC

Mr Sunak says he has one final announcement.

He says the "most powerful barometer of economic success is the change people see and the pride they feel in the places they call home".

As a result, he announces a new "levelling up fund" worth £4bn.

The chancellor says any local area will be able to bid directly to fund local projects - but they must be delivered within this Parliament "and they must command local support".

They could include a new bypass, upgraded railway stations, less traffic or more libraries, museums, and galleries.

"This government is funding the things people want and places need," he says.

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The chancellor says capital - or long-term - spending on infrastructure will total £100bn, a £27bn real-terms rise from last year.

This, he says, is the "highest sustained levels of public investment in more than 40 years."

He announces a new UK infrastructure bank, to be headquartered in the north of England, which he says will finance infrastructure projects from next spring, alongside the private sector.

Image source, HoC

The Chancellor says overseas aid "is only one of the ways we play our role in the world".

He points to the £24bn investment in defence over the next four years, "allowing us to provide security not just for our country but around the world".

And he says the UK is investing more "in our extensive diplomatic network, already one of the largest in the world, and providing more funding for new trade deals."

He adds: "We should, however, judge our standing in the world not just by the money we spend but by the causes we advance and the values we defend."

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The chancellor says the spending review will "strengthen the UK's place in the world", and the UK will "always be open and outward-looking".

But, he says, during an emergency at home, "sticking rigidly to spending 0.7% of our national income on overseas aid is difficult to justify to the British people".

Mr Sunak adds: "At at a time of unprecedented crisis government must make tough choices."

As a result, he says the government will spend the equivalent of 0.5% of national income on overseas aid in 2021, allocating £10bn at this Spending Review.

"And our intention is to return to 0.7% when the fiscal situation allows," he adds.

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Mr Sunak says long-term investment in the NHS will rise by £2.3bn to invest in new technology to improve the patient experience.

He says local authorities will have "extra flexibility" to raise money for social care through council tax and the Adult Social Care precept.

He also confirms the extra £1bn social care grant provided this year will be maintained into next year.

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The chancellor says total departmental spending across Whitehall will be £540bn in 2021.

Day-to-day departmental spending will rise, in real terms, by 3.8% – "the fastest growth rate in 15 years".

But he says it is a rise for the whole of United Kingdom - with an increase of funding for the Scottish Government of £2.4bn, Welsh Government funding by £1.3bn, and £900,000 for the Northern Ireland Executive.

Mr Sunak also says the whole of the UK will benefit from the "UK Shared Prosperity Fund" to match EU funding ending next year,

He says, on average, that will reach £1.5bn a year - with pilot programmes to prepare the country.

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The chancellor says the 2.1m public sector workers who earn less than the median wage of £24,000 will be guaranteed a pay rise of at least £250.

He says the government will accept a recommendation from the Low Pay Commission to increase the National Living Wage next year by 2.2%, to £8.91 an hour - extended to those aged 23 and over.

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Mr Sunak says there will be a pay rise for over a million nurses, doctors and others working in the NHS.

But he says pay rises in the rest of the public sector will be paused next year.

However, he promises the government "will protect those on lower incomes".

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The chancellor says the statistics "remind us of something else" - that the virus has "deepened the disparity between public and private sector wages".

He says in the six months to September, private sector wages fell by nearly 1% compared to last year, while public sector wages rose by nearly 4%.

Mr Sunak says, as a result, he "cannot justify a significant, across-the-board pay increase for all public sector workers".

Instead, he says the government will target "our resources at those who need it most".

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The chancellor says the OBR expects unemployment to rise to a peak of 7.5% - or 2.6m people - in the second quarter of next year.

Unemployment is then forecast to fall in every year, reaching 4.4% by the end of 2024, he adds.

He announces an extra £3bn next year to support those who are unemployed.

But he warns that "we cannot protect every job".

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Image source, HoC

Mr Sunak says: "The economic damage is likely to be lasting."

As a result of what he calls "long-term scarring", the chancellor says the economy "will be around 3% smaller than expected in the March Budget" come 2025.

The chancellor says the economic impact of coronavirus, "and the action we’ve taken in response" has led to a "a significant but necessary increase in our borrowing and debt".

The forecast for UK borrowing this year is £394bn this year - equivalent to 19% of GDP - "the highest recorded level of borrowing in our peacetime history".

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The chancellor says underlying debt is due to hit 97.5% of GDP in 2025-26.

However, he says that the "costs of inaction would have been far higher".

But he says this situation is "unsustainable over the medium term".

"We have a responsibility, once the economy recovers, to return to a sustainable fiscal position," he adds.

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The chancellor moves onto the forecasts of the Office for Budget Responsibility.

He says the economy will contract this year by 11.3% - "the largest fall in output for more than 300 years".

Mr Sunak says they will start to recover as restrictions are eased.

But, he adds: "Even with growth returning, our economic output is not expected to return to pre-crisis levels until the fourth quarter of 2022."

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Mr Sunak says total spending on Covid-19 so far has been £280bn.

Rishi Sunak confirms an extra £3bn for the NHS in England next year to tackle the backlog in operations from Covid.

He says there will be over £2bn for transport, £3bn for English councils, an extra £250m to help end rough sleeping.

Taken together, next year, he says public services funding to tackle coronavirus will total £55bn.

The pound weakened a touch ahead of Chancellor Rishi Sunak's spending plans. Sterling is also expected to be sensitive to news of any further progress towards a post-Brexit trade deal.

The pound was last trading down 0.15% at $1.3342 and also down by 0.2% against a broadly stronger euro at 89.18 pence.

Image source, HoC

Beginning his speech, Rishi Sunak says the "health emergency is not yet over" and the economic emergency has "only just begun".

He says the "immediate priority" will be to protect jobs, as well has help businesses and support public services.

Image source, UK Gov

This Spending Review - detailing the money government departments will get for things like the NHS, education, roads, and police - only covers the financial year 2021-22.

In normal times, reviews cover three or four years. But such is the economic uncertainty that this look-ahead has been limited to the next 12 months.

It will also set out money for the devolved administrations Scotland, Wales and Northern Ireland.

So what should you look out for? Here's our quick guide

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Chancellor Rishi Sunak gets to his feet to begin his statement on the Spending Review.

Stay with us and we’ll bring you all the latest updates here.

Faisal Islam
BBC Economics Editor

Today’s Spending Review is not a Budget.

There will be tens of billions of pounds announced in new spending, but little or nothing on taxation.

The crucial new information will be how persistent the economic hit from the pandemic is expected to be.

Rishi Sunak says protecting jobs is his number one priority, and there will be a £3bn "Restart scheme" to channel one million long-term unemployed back into work.

Huge sums will be allocated to rolling out vaccines and test and trace schemes, as well as helping the NHS clear the backlog of delayed treatment.

But although the chancellor insists there will be no return to austerity, there will be losers.

Public sector wages will see a squeeze, and for some, a freeze - the question is for how long.

The aid budget will be cut, raising the threat of a rebellion in the Commons by unhappy Conservative backbenchers.

A long-term plan to reset the regional balance of the economy - the so called "levelling up" agenda - will remain.

But the heart of this statement will be the need for ongoing economic rescue.

Laura Kuenssberg
Political editor

The chancellor and prime minister have decided politically that while budgets will be tight (and let's see the black and white to assess this for real) there can't be a return to the kind of squeeze of the Cameron and Osborne era.

No one in government would pretend in private there is any way to avoid tax rises at some point.

But Mr Sunak is not going to announce any of that today - any big ways of raising money to fill the hole won't come until the Budget next year at the earliest, and perhaps not until after that.

But today's review will sketch out the very, very serious challenge for the country's finances that is on the way.

Read Laura's full preview.