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US News Boris Johnson's £1trillion Budget spree 'will see him spend more than Tony Blair'

06:25  24 february  2020
06:25  24 february  2020 Source:   dailymail.co.uk

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Analysis suggests Boris Johnson will splurge more than Tony Blair did during his decade in power with total Government expenditure set to rise at the Budget to 40 per cent of gross domestic product. Boris Johnson ' s £ 1 trillion Budget spree ' will see him spend more than Tony Blair '.

But they expect the Government to borrow more cash than Tony Blair did during his decade in power. Whitehall spending is also expected to reach £ 1 trillion for the first A separate report warned that Mr Johnson may actually struggle to spend all of the £ 100billion he wants to use to revitalise the country.

(Video by Reuters)

The Chancellor's Budget plans could see spending rise above £1trillion for the first time.

An analysis by the Resolution Foundation suggests Boris Johnson will splurge more than Tony Blair did during his decade in power.

BRUSSELS, BELGIUM - OCTOBER 17: Prime Minister of the United Kingdom (UK) Boris Johnson gives a press conference at the European Council on October 17, 2019 in Brussels, Belgium. Leaders of the EU countries are meeting to discuss the EU's long-term budget, the strategic agenda and Climate. Brexit will be also on the agenda with the UK edging closer to their 31st October deadline for leaving the European Union. (Photo by Jean Catuffe/Getty Images) © 2019 Jean Catuffe BRUSSELS, BELGIUM - OCTOBER 17: Prime Minister of the United Kingdom (UK) Boris Johnson gives a press conference at the European Council on October 17, 2019 in Brussels, Belgium. Leaders of the EU countries are meeting to discuss the EU's long-term budget, the strategic agenda and Climate. Brexit will be also on the agenda with the UK edging closer to their 31st October deadline for leaving the European Union. (Photo by Jean Catuffe/Getty Images)

According to a report by the thinktank, total Government expenditure is set to rise at the Budget to 40 per cent of gross domestic product, a figure higher than at any point during Mr Blair's tenure.

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Boris Johnson is planning to ramp up government borrowing to spend more than £ 1 tn a year, increasing the size of the British state to make it bigger than at any point under the 10-year premiership of Labour’ s Tony Blair . Analysis from The Resolution Foundation predicts government spending will

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The scheduled spending increase, which includes up to £100billion of extra capital spending and the fastest increase in day-to-day departmental spending since the early 2000s, would lift the Government's managed annual expenditure above £1trillion within four years, it is estimated. 

Tony Blair wearing a suit and tie © Provided by Daily Mail Tony Blair

Borrowing is also likely to rise at next month's Budget, the report said, from £41billion in 2018-19 to £64billion by 2021-22.

Resolution Foundation economist Jack Leslie said: 'The Chancellor's big spending plans to "level up" the country through infrastructure projects will lead to a bigger state than at any point under Tony Blair, and marks a big shift for a traditionally small state Conservative Party.

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Boris Johnson earned almost £ 2MILLION in the last four years - more than TWICE as much as the Prime Minister. Mr Johnson ' s total earnings since 2011/12 came to £ 1 .9million - dwarfing the £ 791,467 earned by David Cameron for his work in No 10, plus rental income on the Cameron family

Setting the budget has always been a tug of war, but was fiercer than ever this time because Britain' s exit from the bloc last month came amid The standoff has exposed rifts between countries in the north and south, between east and west, and between more developed and less advanced economies.

'But new roads and rail lines are only part of the story for a Government wishing to turn the corner on a decade of austerity.

a group of people standing next to a person wearing a suit and tie: The Budget plans by Chancellor Rishi Sunak (pictured) could see spending rise above £1trillion for the first time © Provided by Daily Mail The Budget plans by Chancellor Rishi Sunak (pictured) could see spending rise above £1trillion for the first time

'If the Chancellor wants to increase spending on day-to-day public services in a fiscally responsible way he will have to change another of his party's traditional priorities – lower taxes. Higher spending will require higher taxes.'

Despite predicting that the Office for Budget Responsibility (OBR) is likely to downgrade its outlook for the size of the economy by around 0.5 per cent at the end of 2022, the report suggests new Chancellor Rishi Sunak could still see a 'modest windfall' of around £8billion.

British Prime Minister Boris Johnson speaks during his first Cabinet meeting flanked by his new Chancellor of the Exchequer Rishi Sunak, after a reshuffle the day before, inside 10 Downing Street, in London, Friday, Feb. 14, 2020. British Prime Minister Boris Johnson tightened his grip on the government Thursday with a Cabinet shake-up that triggered the unexpected resignation of his Treasury chief, the second-most powerful figure in the administration. (AP Photo/Matt Dunham, Pool) © ASSOCIATED PRESS British Prime Minister Boris Johnson speaks during his first Cabinet meeting flanked by his new Chancellor of the Exchequer Rishi Sunak, after a reshuffle the day before, inside 10 Downing Street, in London, Friday, Feb. 14, 2020. British Prime Minister Boris Johnson tightened his grip on the government Thursday with a Cabinet shake-up that triggered the unexpected resignation of his Treasury chief, the second-most powerful figure in the administration. (AP Photo/Matt Dunham, Pool)

It would give him £10billion headroom against the Treasury target of delivering a balance in that year.

The foundation said its analysis, published today, shows lower interest rates and reduced inflation are likely to offset any OBR growth prediction downgrade. 


Neighbour of PM Boris Johnson’s father dies after shooting incident .
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