Public spending

The coronavirus outbreak has impacted the UK economy in a number of different ways. The magnitude of the recession caused by the virus is unprecedented in modern times. While a recovery is underway, there is uncertainty over how fast economic activity will regain lost ground. This briefing examines the economic impact of the crisis to date and outlines the key issues for the outlook. It summarises policy measures introduced to mitigate the economic effects of Covid-19 and details the impact on the public finances.

The Chancellor will make a statement to the House on Wednesday 8 July. He will outline plans to support the economy. The Chancellor’s statement is being labelled as a ‘summer economic update’.

There will be an Estimates Day debate in the House of Commons on Tuesday 7 July 2020.

On Thursday 9 July there will be an Estimates Day debate in the House of Commons Chamber on “The merger between DFID and the FCO and the implications for expenditure of Official Development Assistance (ODA) across government.” The debate will be led by Sarah Champion and Tom Tugendhat, the respective chairs of the International Development Committee and the Foreign Affairs Committee.

This policy limits the total amount that Government can spend on certain benefits, including tax credits and housing benefit. Not to be confused with the household benefits cap which limits the amount individual households can receive.

A summary of the process and details of the 2020-21 Main Estimates, the way in which Parliament approves the Government's spending plans.

This note aims to answer some FAQs related to the budget deficit.

Background and issues for consideration concerning the Government's proposed Shared Prosperity Fund, which will replace EU structural funding now that the UK has left the EU.

What is aid? What is the UN 0.7% aid target and why has the UK adopted it? Which government departments spend UK aid? What impact does UK aid have? What will be the impact of Brexit on UK aid? These and other questions are answered in an accessible way in this briefing paper.

Government debt will increase as it responds to coronavirus. In this insight we look at the basics of what government debt is, how it is funded and who it is owed to.

What economic support have governments given to businesses and individuals to tackle the impact of the coronavirus? This paper looks at the policies put in place by the EU, governments in Europe, the US and other developed countries.

On 25 March 2020, there will be two topics for the 7th allotted Opposition Day Debate in the House of Commons. The first debate is on the subject of "Social cohesion and community" and the second on "Financial and social emergency support package", both in the context of the Covid-19 outbreak. The House of Commons Library has shared relevant material below.

This note provides a short overview of the Contingencies Fund and the public spending measures being proposed to deal with the economic impact of the coronavirus outbreak.