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Brexit: Boris Johnson fuels early election speculation as chancellor fast-tracks spending review

Review rushed through to honour promises to police, schools and NHS - but Labour dismisses move as 'pre-election panic measures'

Lizzy Buchan
Political Correspondent
Thursday 08 August 2019 18:55 EDT
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Boris Johnson's government will fast-track plans to fund multi-billion pound public spending pledges in a move that will fuel speculation of a looming general election.

Sajid Javid, the chancellor, announced he was accelerating plans for departmental budgets with a 12-month spending round to be completed in September, in order to free up departments for Brexit on 31 October.

The unexpected announcement comes instead of a three-year spending review, prompting Labour to accuse the government of "pre-election panic measures".

Downing Street has refused to rule out calling a general election in the days after the UK leaves the EU at Halloween, if Mr Johnson is ousted by a confidence vote tabled by Jeremy Corbyn.

The prime minister and Mr Javid have ordered departments to rush through their budget plans by the end of next month for 2020/21, rather than a three-year period first mooted by ex-chancellor Philip Hammond.

The Treasury said the review would meet existing fiscal rules established by former chancellor Philip Hammond, aimed at keeping borrowing under control and debt falling, while pursuing Mr Johnson’s desire to fund 20,000 extra police officers, increase school funding and meet NHS pledges.

Mr Javid said: “We will get Brexit done by 31 October and put our country on the road to a brighter future.

“The prime minister and I have asked for a fast-tracked spending round for September to set departmental budgets for next year. This will clear the ground ahead of Brexit while delivering on people’s priorities.”

Shadow chancellor John McDonnell said the government was "playing a dangerous game" with public finances and warned against continuing to pursue a "disastrous no-deal" Brexit.

“This smacks of pre-election panic measures by the government," he said.

"Johnson is splashing a little bit of cash as a publicity stunt, but keeping the door open for even more austerity if a no deal Brexit breaks the economy.

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Spending reviews tend to cover periods of three or four years and involve discussions between departments and the Treasury over funding settlements. A full review will take place in 2020.

Last month, Mr Hammond sounded a note of caution against turning on the spending taps as he explained how the new government would have to decide the length of the spending review and judge what is right for the circumstances.

He told MPs: “The purpose of a spending review is these things can be looked at in the round, and the responsible way to do a spending review is to first set the envelope of what is affordable and then to look at the different bids, which will, I can confidently predict, greatly exceed the available envelope of spending power, and prioritise.

"That’s the difficult business of government.”

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