Commons Sense

House of Commons · Written Ministerial Statement

OBR 2020 Fiscal Sustainability Report and response to the OBR 2019 Fiscal Risks Report

14 July 2020 · Treasury

Proposed by Rishi Sunak Con Richmond and Northallerton

Economy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The UK government responds to the OBR's 2020 Fiscal Sustainability Report and the 2019 Fiscal Risks Report.
  • The government has implemented measures to support economic recovery following the COVID-19 pandemic.
  • Plans for further economic support will be outlined in the next budget, including a review of the fiscal framework and the Plan for Jobs with 30 billion investment.

Issue summary

The statement addresses the UK government's response to the Office for Budget Responsibility (OBR) Fiscal Sustainability Report and the 2019 Fiscal Risks Report, focusing on measures taken during the COVID-19 pandemic.

Action requested

The government has taken significant action to support economic recovery post-COVID-19 and will outline further plans at the next budget. This includes a review of the fiscal framework, implementation of the Plan for Jobs with £30 billion investment, and measures in the autumn Budget and Spending Review.

Key facts

  • OBR's 2020 Fiscal Sustainability Report was published fulfilling legal obligations.
  • Public sector net borrowing is projected to reach between 13% and 21% of GDP in 2020-21 due to COVID-19 economic shock.
  • The government’s fiscal response to the pandemic totals £160 billion.
  • A new Job Retention Bonus worth £1,000 per furloughed worker is introduced as part of the Plan for Jobs.
  • HM Treasury is reviewing the UK's fiscal framework to ensure sustainability and appropriateness in the current macroeconomic context.
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