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OBR 2020 Fiscal Sustainability Report and response to the OBR 2019 Fiscal Risks Report
14 July 2020
Type
Written Ministerial Statement
Department
Treasury
At a Glance
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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