Summary

  • The Chancellor has delivered his Spending Review - setting out government plans for the economy and spending

  • Rishi Sunak said the government is set to borrow a record £394bn this year

  • He told MPs unemployment will rise to 2.6 million by the second quarter of 2021

  • Mr Sunak said the economy is predicted to contract by 11.3% and grow by 5.5% next year and 6.6% in 2022.

  • Public sector pay will be frozen, except for NHS staff and those earning under £24,000

  • The BBC has been told that 1.3 million people will be directly affected by the public sector pay freeze

  • Spending on overseas aid will be cut from 0.7% to 0.5% of national income next year

  • The spending plans don't include any tax changes - they are only announced in the Budget

  • The economy has been hit by the cost of borrowing for the coronavirus pandemic and job losses

  • The Office for Budget Responsibility published its forecasts for the economy and public finances

  • The OBR warned the economy is not expected to return to pre-pandemic levels until the end of 2022

  • The chancellor told the cabinet this morning the OBR figures were "sobering"

  1. Let's get ready for the Spending Reviewpublished at 12:41 Greenwich Mean Time 25 November 2020

    BBC Politics

    We will pause there for a moment on PMQs to get ready for the big statement of the day - the Spending Review.

    After a quick clean down of the Commons, Chancellor Rishi Sunak will be up on his feet to give us the run down of the UK economy and its future prospects.

    Stay with us for all the news and analysis.

  2. Reeves: Give key workers well deserved pay risepublished at 12:35 Greenwich Mean Time 25 November 2020

    ReevesImage source, HoC

    Labour's Ellie Reeves says foodbank use in her constituency has been "increasing steadily", with many, including key workers, "struggling to make ends meet".

    She asks the prime minister whether he thinks a teaching assistant's wage of just under £14k and a nursing auxiliaries salary of £18k "is enough to live on".

    She adds: "Instead of pay freeze, give key workers a well deserve pay rise."

    Mr Johnson says the MP is "right to value key workers and the amazing jobs they do".

    He says he is "proud of the work we have done not just to increase public sector pay in July, but also what we are doing to support increases in the living wage".

  3. PM: We will set out economic impact of tier systempublished at 12:31 Greenwich Mean Time 25 November 2020

    RosindellImage source, HoC

    Conservative MP Andrew Rosindell says if London goes into the new tier 2 or tier 3 it will have "devastating" economic consequences.

    He calls for the government to publish a full "cost analysis" of the projected effect on the economy of the new restrictions.

    Boris Johnson says that "of course" the government will set out the health, economic and social impact of the policy.

  4. Davison: Now is not the time for MPs pay risepublished at 12:29 Greenwich Mean Time 25 November 2020

    DavisonImage source, hoC

    Tory MP Dehenna Davison brings her campaign to halt the pay rise for MPs to the Commons.

    She has already sent a letter to the independent body in charge of deciding on any rises, with a list of MPs signing it, telling them it is not right to go ahead in the middle of the pandemic.

    She asks the PM: "Many of our constituents are facing challenges due to coronavirus.

    "Would he agree with me and many [other MPs] that when there are intense discussions going on on on how to balance finances, now is not the time for an MPs' pay rise?"

    Mr Johnson says: "I do agree with that" - pointing to the fact the government has frozen ministers' salary this year.

  5. Lib Dem leader calls for rise in carer's allowancepublished at 12:28 Greenwich Mean Time 25 November 2020

    House of Commons
    Parliament

    DaveyImage source, HoC

    Lib Dem leader Sir Ed Davey says it is "very disappointing" the PM has rejected his demand for a £20-a-week rise to the carer's allowance.

    The allowance can be claimed by people who act as a first-time carer for at least 35 hours a week and are eligible for certain benefits.

    The prime minister says he will look into the issue, but ministers are "doing our best" to support people during the pandemic.

    He points to previous "substantial increases" in the minimum wage and increased to the universal credit benefits system.

  6. Blackford: Foreign Aid is 'moral mission'published at 12:25 Greenwich Mean Time 25 November 2020

    BlackfordImage source, HoC

    The SNP's leader in Westminster, Ian Blackford, now gets his two questions.

    He tells the prime minister "protecting the foreign aid budget has long been source of unity" and a "moral mission".

    Asked if he agrees about keeping the 0.7% of national income figure, Mr Johnson says the UK is "incredibly proud with what we have delivered for the poorest and neediest and that will continue".

    Mr Blackford then asks if the reports foreign aid will be cut to 0.5% is true, saying keeping 0.7% is "not only right thing to do morally but the sensible thing to do".

    The PM does not answer directly, but says he agrees the UK "should be playing a leading role in eradicating Covid 19" and the country is already "in the lead in promoting, not just inventing vaccines".

  7. Analysis: Starmer questions government value for moneypublished at 12:19 Greenwich Mean Time 25 November 2020

    Vicki Young
    Deputy Political Editor

    Sir Keir Starmer asks about government contracts and value for money.

    Ministers hope the public will give them some leeway because they were trying to deal with a pandemic, but Labour thinks the accusation of cronyism resonates with many.

  8. Johnson 'knocking the taxpayer,' says Starmerpublished at 12:18 Greenwich Mean Time 25 November 2020

    House of Commons
    Parliament

    PMQsImage source, HoC

    For his final question, Sir Keir says the government is "knocking the taxpayer" in its procurement of protective equipment.

    He accuses him of "spraying public money" on contracts, whilst not committing to a pay rise for public-sector workers next year - which we should hear more about later.

    In reply, Boris Johnson says public sector workers got an above-inflation pay rise earlier this year.

    He says the legal minimum wage will continue to be increased - and hints we will get the full details in Mr Sunak's statement.

  9. 'Conflicts of interests' over Covid contractspublished at 12:17 Greenwich Mean Time 25 November 2020

    StarmerImage source, HoC

    Sir Keir says then moves on to "conflicts of interests".

    He points to a number of controversies in the awarding of contracts, and the Health Secretary Matt Hancock hiring a close friend, who is also a lobbyist.

    The PM defends his government, saying any conflicts of interest are published in contracts.

    Mr Johnson adds: "But again he seems to be attacking the government for shifting heaven and earth... to get the medicines, the PPE, the treatments the country needed."

    He concludes by accusing Labour of having a "deep underlying hatred of private sector".

  10. Starmer asks for figure on 'wasted' PPE spendingpublished at 12:15 Greenwich Mean Time 25 November 2020

    House of Commons
    Parliament

    StarmerImage source, HoC

    In response, Keir Starmer says he is "tackling the issues" in Labour - whilst the PM is "running away" from those in the Conservative party.

    Turning to the issue of procurement, he quotes the National Audit Office's finding this morning on the purchase of unusable PPE.

    He asks how much money has been "wasted on equipment that can't be used".

    The prime minister says 32bn items of protective gear have been purchased, of which 99.5% "conform entirely" to clinical needs.

    He accuses the Labour leader of pursuing "pathetic lines of attack".

  11. Starmer: Leaking led to 'chaotic' announcementspublished at 12:13 Greenwich Mean Time 25 November 2020

    StarmerImage source, HoC

    Sir Keir says: "The reality is any other prime minister would have fired the home secretary and any other home secretary would have resigned."

    He then moves onto the promise of "no leaking" to laughs from his backbenchers.

    The Labour leader says there have been "repeated leaks" over which areas would go into coronavirus restrictions, and leaking to newspapers over national lockdown led to a "truly chaotic" press conference.

    He asks the PM if he is "any closer to working out who in his government is leaking this vital information?"

    Boris Johnson says he will tell MPs when they have more information, but accuses the Labour leader of "concentrating on trivia when what the people of this country want is to see his support... for the tough measures we are putting in to defeat coronavirus".

    He also points to problems in Sir Keir's own party over the ongoing row over Jeremy Corbyn's leadership, but the Speaker reminds the PM it is a session of questions to him, not the leader of the opposition.

  12. Analysis: PM backs his home secretarypublished at 12:11 Greenwich Mean Time 25 November 2020

    Vicki Young
    Deputy Political Editor

    Boris Johnson has really gone out on a limb by standing by Home Secretary Priti Patel after investigation found her behaviour amounted to bullying – now he has to publicly defend her.

  13. PM: I make no apology for 'standing by' Patelpublished at 12:09 Greenwich Mean Time 25 November 2020

    House of Commons
    Parliament

    JohnsonImage source, HoC

    Sir Keir Starmer asks what "message" it sends that the PM's independent adviser on standards resigned after his inquiry into bullying allegations against Priti Patel.

    The PM overruled Sir Alex Allen to say the home secretary did not breach rules on ministerial behaviour.

    Boris Johnson says his resignation is "entirely a matter for him".

    He adds that he will "make no apology" for "standing by" a home secretary "delivering on the people's priorities".

  14. Starmer: Promises on ministerial codepublished at 12:07 Greenwich Mean Time 25 November 2020

    StarmerImage source, HoC

    In his first question, Sir Keir Starmer reads from the ministerial code, which the prime minister wrote the foreword to.

    Sir Keir says it includes "five promises in two sentences", including no bullying and no harassment.

    "How many of those promises does he think his ministers have kept?" asks the Labour leader.

    Boris Johnson says his ministers are "working hard and overall doing an outstanding job in delivering the people's priorities".

    The PM says if Sir Keir wants to "make allegations, he is welcome to do so".

  15. UK will exit Brexit transition next month, PM sayspublished at 12:06 Greenwich Mean Time 25 November 2020

    House of Commons
    Parliament

    Boris JohnsonImage source, HoC

    Conservative MP Laurence Robertson asks the first question, and focuses on whether the UK will leave the post-Brexit transition period "as a whole" at the end of December.

    Boris Johnson says he can make that guarantee.

    Referring to negotiations over future fishing agreements between the UK and EU - which have been a sticking point in the ongoing trade talks - Mr Johnson says the EU must "accept the reality" that "we must be able to control access to our waters".

  16. PMQs begins...published at 12:01 Greenwich Mean Time 25 November 2020

    House of Commons
    Parliament

    Boris Johnson is all logged on and appearing in the Commons via video, so Prime Minister's Questions can begin.

    We will bring you all the updates here.

    And remember to stay with us after for coverage of Chancellor Rishi Sunak's Spending Review.

  17. Analysis: PMQs - but not today's main eventpublished at 12:00 Greenwich Mean Time 25 November 2020

    Vicki Young
    Deputy Political Editor

    PMQs may not be the main event in Westminster today, but as we've been showing you, there's plenty of material Labour leader Sir Keir Starmer can draw on for his questions to the PM.

    Priti Patel, public sector pay, and he’s been asking lots of questions about the way government contracts have been awarded.

    Main thing exercising English Conservative MPs is the tier announcements coming tomorrow.

    Lots of last minute lobbying, but I'm hearing Boris Johnson is very resistant to splitting counties like Kent into smaller areas. And the PM wants to keep whole of London in same tier too.

  18. UK 'unlawfully ignored' immigration rules warningspublished at 11:56 Greenwich Mean Time 25 November 2020

    Jamaican immigrants welcomed by RAF officials at Tilbury Docks, EssexImage source, PA Media

    A new report from the Equalities and Human Rights Commission has criticised the Home Office for unlawfully ignoring warnings on changes to immigration rules.

    The department was told creating to so-called "hostile environment" - designed to deter "irregular" migrants from settling - would create "serious injustices" for the Windrush generation.

    Now the human rights watchdog has said the decision to pursue it harmed many people already living in the UK.

    The troubles faced by the Windrush migrants, who came from the Caribbean to the UK from 1948 to 1971, has often been raised at PMQs, and this report could see it come up again.

    You can read more about the report and what it meant for those people here.

  19. How much could the foreign aid budget fall?published at 11:51 Greenwich Mean Time 25 November 2020

    Reality Check

    The government announced in July that it would be cutting the foreign aid budget by £2.9bn this year.

    It was set to be £15.8bn this year (but that was before the pandemic struck) so the cut would bring it down to £12.9bn.

    The amount spent on foreign aid is fixed – by law - at 0.7% of GNI (that’s a measure of how much is produced in the economy, similar to GDP).

    As the economy is expected to be considerably smaller this year because of the impact of Covid-19, it means 0.7% of it will be worth less.

    The £2.9bn implies that the government is expecting the economy to be about 18% smaller this year than they thought before the pandemic.

    As it is rumoured that the government may also be planning to cut the aid budget to 0.5% of GNI, which would reduce it to about £9.2bn this year, although you would expect it to be more in subsequent years when the economy recovers.

  20. Foreign aid rowpublished at 11:47 Greenwich Mean Time 25 November 2020

    Woman marking up aid boxImage source, PA Media

    Another topic dividing MPs - meaning it could come up during PMQs - is overseas aid.

    The BBC understand the government is planning to cut the budget from 0.7% of national income (a figure written into law) to 0.5%.

    Foreign Secretary Dominic Raab said the UK was "a leading, if not one of the leading, countries on aid" and "that will continue".

    But other senior figures in the Tories, including former Foreign Secretary Jeremy Hunt and former Scottish Conservative leader Ruth Davidson, have criticise the response - and what it would do to the UK's international standing.

    We could hear more about any possible changes in the Spending Review.

    But for now, You can read more about the issue here.