Budget 2020: New Chancellor to invest 'historic amounts' on infrastructure and innovation

11 March 2020, 06:31

New Chancellor Rishi Sunak works on his budget
New Chancellor Rishi Sunak works on his budget. Picture: PA

New Chancellor Rishi Sunak is set to use his first budget to pledge to invest "historic amounts" on infrastructure and innovation.

Against a backdrop of coronavirus instability, the Chancellor will promise hundreds of billions of pounds to help support infrastructure projects, such as roads, railways, broadband and housing.

The Treasury is also expected to include new laws which will aim to ensure that people who rely on cash, including vulnerable groups and local communities across the UK, can access it as and when they need it.

Mr Sunak has not ruled out breaking the fiscal rules limiting taxation and spending set out in the Conservative manifesto as he seeks to guide the UK through the instability.

One key Tory election pledge was that the party would not borrow to fund day-to-day spending and would ensure debt drops in five years' time, so many eyes will be on the Chancellor as he stands at the dispatch box.

However, Boris Johnson's Government has faced criticism for delaying its key National Infrastructure Strategy to tackle the climate crisis and boost transport connectivity.

Speaking on the eve of his first Budget, Mr Sunak pledged that "no region will be left behind" when he unveils the financial plan.

"We have listened and will now deliver on our promise to level up the UK, ensuring everyone has the same chances and opportunities in life, wherever they live," he added.

"By investing historic amounts in British innovation and world-class infrastructure, we will rebalance opportunities and lay the foundations for a decade of growth for everybody."

Labour's shadow chancellor John McDonnell accused the Treasury of publishing "exaggerated claims" on partially fixing infrastructure he blamed the Tories for damaging.

"Mr Sunak is asking us to congratulate him for partially rebuilding what the Conservatives have destroyed over the last 10 years," the Labour MP added.

Mr McDonnell also warned that public services are in a "vulnerable position" to deal with the "shock" of the coronavirus as he called for urgent investment.

Mr Sunak has faced calls to provide businesses with immediate support, particularly to those facing losses and payments to sick or self-isolating staff.

The Government had pledged to deliver its £100 billion National Infrastructure Strategy on Wednesday, but that was now being delayed for a number of months.

The detailed plan should set out transport plans while working towards achieving the pledge of net-zero carbon emissions by 2050.

But his first Budget is expected to include a £5 billion investment to roll out faster broadband across the UK by 2025.

A further £5 billion is expected to be made available in loans in order to boost post-Brexit exports, while £2.5 billion would be spent to repair 50 million potholes.

Mr Sunak was also anticipated to double funding for flood defences to £5.3 billion after the storm damage seen across swathes of the nation.

The Office for Budget Responsibility's forecasts for the deficit, debt, GDP and productivity will also be revealed on Wednesday, potentially shedding some light on how Brexit may affect the economy.

More Latest News

See more More Latest News

Russia bombed Ukrainian infrastructure overnight

Russia launches 'massive attack' on Ukraine's power supplies, with 'energy security under growing threat'

Newry Magistrates' Court

Man, 61, charged with non-recent sexual offences in Northern Ireland

Drivers queuing in Dover on Friday morning

Holidaymakers hit with 2-hour Dover ferry waits amid strong winds, as 2.6m hit the roads for Good Friday getaway

The attack happened on a train in south London

Teenager charged with attempted murder after south London train stabbing, with victim still in critical condition

Mother Natalie Pinnell

Mother left in tears after daughter with complex needs 'erased' from school photo

Amber Rudd and Mary Beard have both been nominated to the Garrick Club

Amber Rudd and Mary Beard among seven women nominated for membership of all-male Garrick Club

Exclusive
Anneliese Dodds said Labour would make sure local people have 'skin in the game' with tackling inequality

'Rebuild has to start from ground up,' Labour's Anneliese Dodds says, and 'local people must have skin in the game'

Mohamed Mansour has been awarded a knighthood

Conservatives accused of 'cronyism' after donor who gave £5 million awarded knighthood in surprise honours list

Exclusive
Justin Welby recalled his experience of coping with his father's drinking as a teenager.

‘It was utterly isolating’: Archbishop of Canterbury recalls harrowing childhood with alcoholic father

More than 2 million drivers are set to hit the road on Good Friday.

Easter Carmageddon: Over two million drivers to hit the road on Good Friday after Storm Nelson travel chaos

Michael Gove has slammed the water firm as a 'disgrace'.

Thames Water bosses branded a ‘disgrace’ as Michael Gove tells firm ‘not to punish consumers’ for its failings

South Africa Bus Crash

Girl, 8, the sole survivor as 45 die in bus crash off South Africa bridge

A spokesman has denied reports the sausage dog could be banned.

The wurst news is over: Germany denies claims of sausage dog ban

Israel Palestinians Britain Aid

UN top court orders Israel to open more land crossings into Gaza

Greece Confidence Vote

Greece’s government survives no-confidence motion called over rail disaster

A council has had to apologise following the incident.

Fury as parents offered version of school class photo without complex needs pupils