Implications of COVID-19 on Government Spending and Fiscal Challenges Ahead

This chapter delves into the impact of COVID-19 on government spending and the fiscal challenges facing the Chancellor in the upcoming spending review. It discusses the complexities of public sector pay, measuring changes in public spending relative to plans and national income, and the uncertainties surrounding the economy. The chapter also touches on the stability of public finances amidst potential risks like rising interest rates and Brexit uncertainties.