Economics

U.K. Curtails Spending Review in Fresh Blow to Boris Johnson

  • Premier had hoped to commit cash to levelling up strategy
  • Decision comes as budget deficit climbs to record $271 billion

Rishi Sunak departs from 11 Downing Street in London, on Oct. 20.

Photographer: Chris J. Ratcliffe/Bloomberg
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Chancellor of the Exchequer Rishi Sunak cut a planned spending review from three years to one due to “unprecedented uncertainty,” dealing a blow to Boris Johnson’s plans to map out his priorities for a post-pandemic world.

The prime minister had hoped to bolster his agenda of “leveling up” inequalities across the country after promising 100 billion pounds ($130 billion) of investment in infrastructure projects. Now Sunak will set the budgets of government departments for the 2021-22 fiscal year only as a resurgent coronavirus raises more doubts about the economic outlook.