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"

Live Reporting

Jennifer Scott, Paul Seddon and Howard Mustoe

  1. Sunak's blue book

    Chancellor leaving No 11

    On Budget day's we're used to seeing chancellors pause on the steps of No 11 clutching their famous red box.

    But not for a Spending Review.

    Rishi Sunak left No 11 Downing Street a few moments ago with his spending plans - the blue book - tucked under his arm.

    We'll have to wait until 12:30 GMT to find out what's in it.

  2. Economic forecasts 'sobering read'

    Boris Johnson and Rishi SunakReuters

    Ahead of PMQs and the Spending Review, Boris Johnson and Rishi Sunak have been briefing the Cabinet on what is to come.

    A Downing Street spokesman said ministers were told the upcoming forecasts from the Office for Budget Responsibility (OBR), showing the impact of the pandemic on the UK economy would "make for a sobering read, showing the extent to which the economy has contracted and the scale of borrowing and debt levels".

    But they claimed the cost "would have been much higher had we not acted in the way we have done".

    We will hear the details from OBR at 14:30 GMT.

  3. PPE price rises cost taxpayers £10bn

    Nurse in glovesAlamy

    Personal Protective Equipment (or PPE) was a huge focus at the start of the pandemic, as health workers (and other industries) fought to get their hands on vital kit.

    But a new report from the National Audit Office has revealed stockpiles in England were inadequate ahead of the crisis, and price rises cost taxpayers about £10bn.

    Almost £12.5bn was spent on 32bn items of PPE between February and July 2020.

    During the same period in 2019, 1.3bn items were bought at a cost of £28.9m.

    We could see the topic raised during today's PMQs.

  4. A ‘jolly careful’ Christmas

    Woman with presents in carGetty Images

    Talk of Christmas seems to come earlier every year, right? Well, this December is definitely going to take some extra planning.

    The leaders of the four nations announced last night a joint plan for the UK, where up to three households can bubble together for a five day festive period.

    It came with a warning from the PM though, with Boris Johnson telling people to be “jolly careful”.

    Read more about the rules and who you will be allowed to see here.

  5. Tier talk

    Woman in maskReuters

    So, what questions could the PM face from MPs in this week's PMQs?

    Much of the talk in the corridors of power has been around Covid restrictions in England, and what they will look like come 2 December.

    Boris Johnson confirmed on Monday that the national lockdown would come to an end and the tier system would make a return across the country.

    But he also warned the top levels would be made more severe to try and keep case numbers down and to lower the so-called R number.

    A lot of MPs from all parties are worried what this will mean for their constituencies, with who goes where expected to be announced on Thursday.

    Expect a lot of backbench appeals for the lowest tiers in this week’s PMQs.

    Our handy postcode search here shows you what the current restrictions are in your area.

  6. Welcome to the BBC Politics live page

    BBC Politics

    ParliamentPA Media

    Good morning and welcome to a busy day in the heart of Westminster.

    We'll bring you your usual Wednesday dose of Prime Minister’s Questions from 12:00 GMT - although Boris Johnson will be contributing from No 10 due to his isolation period.

    But after a quick wipe down of the Commons, we will also be covering Chancellor Rishi Sunak’s Spending Review, giving us the lowdown on the UK’s economic prospects.

    Stay with us for all the updates and analysis.