British Finance Minister Rishi Sunak will launch a government spending plan for the coming year in its Expenditure Review in parliament today.
Sunak is expected to announce additional spending to alleviate operating arrears in the health system, overcome the surge in unemployment and develop new infrastructure as well as increases in defense spending.
With the UK's full exit from the European Union (EU) on 31 December during the new trade agreement, Sunak is likely to announce more spending on customs operations and replacement of subsidies for farmers.
However, the projected cost of the loan included in the blueprint may reduce the spending plan.
The budget deficit is expected to rise to around 20% of economic output, almost double the level experienced during the global financial crisis which took a decade to reduce lending.
In addition, he is also expected to comment on the extent of the impact of the coronavirus pandemic on the UK economy which is projected to return to contraction in the last three months of this year following the resurgence of coronavirus infection causing closures in the country.
