† • Over £4.1 billion and over £1.7 billion lent through BBLS and CBILS * Coronavirus Job Retention Scheme (CJRS) - HMRC Coronavirus Job Retention Scheme August 2020; HMRC Coronavirus Job Retention Scheme February 2021 [Data covers pre-extension CJRS 1 March 2020 – 31 October 2020, and number of employments furloughed † Self-Employment Income Support Scheme (SEISS) - SEISS 1: HMRC Self-Employment Income Support Scheme February 2021 [Data covers SEISS claims 25 March 2020 – 31 January 2021] ‡ Bounce Back Loan Scheme (BBLS)/ Coronavirus Business Interruption Loan Scheme (CBILS) - British Business Regional analysis of Coronavirus loan schemes shows continued even distribution across the UK [Data covers CBILS and BBLS 23 March 2020 – 18 January 2021]

A.1 Between March and December 2020, the government announced over £280 billion1 of economic support that strengthened public services and protected businesses and individuals in every part of the UK from the worst effects of the pandemic and the restrictions introduced to limit the spread of the virus. As measures to prevent further spread of the virus evolved, government responded with adapted support. A.2 The government has provided unprecedented support to the devolved administrations to facilitate their response to COVID-19, in addition to UK-wide measures. Building on the £16.8 billion upfront Barnett guarantee for this year, the government announced a further £2.1 billion in February 2021 that the devolved administrations can spend this year or next year. From the start of the pandemic to February 2021 the total Barnett funding allocated to the devolved administrations has reached nearly £19 billion, including £9.7 billion for the Scottish Government, £5.9 billion for the Welsh Government and £3.3 billion for the Northern Ireland Executive.2 This funding has enabled the devolved administrations to deliver support where the programmes set out below don’t apply across the whole of the UK. A.3 This annex sets out government economic support announced since the beginning of the pandemic to 28 February 2021. Where the Budget announces extensions to or updates on these support schemes, details can be found in chapter 2 of this document. A.4 These unprecedented economic support schemes have benefited all parts of the United support schemes for businesses and individuals. impact of policy decisions on borrowing 2 HM Treasury, Supplementary Estimates 2020-21, February 2021

A.5 The government has provided comprehensive economic support to protect businesses from the impacts of the pandemic helping them to plan for subsequent months. A.6 Access to finance – The government launched five temporary schemes to help businesses across the UK deal with cashflow problems resulting from COVID-19 pressures by providing additional • Coronavirus Business Interruption Loan Scheme (CBILS) – CBILS has provided over 92,000 facilities worth £22 billion to eligible UK-based businesses3 with turnover under £45 million. Businesses in Scotland, Wales and Northern Ireland have benefitted from a total of nearly 8,000 CBILS worth a total of £2 billion,4 which aligns with their proportion of UK businesses. The scheme provides loans of up to £5 million with an 80% government guarantee to the lender, giving lenders the confidence to provide finance to SMEs. The government does not charge businesses for this guarantee and also covers the first twelve months of interest payments and fees. The application period ends on 31 March 2021. • Coronavirus Large Business Interruption Loan Scheme (CLBILS) – CLBILS has provided 705 facilities worth nearly £5.3 billion to eligible UK-based businesses5 with turnover above £45 million. The scheme provides loans of up to £200 million (to a maximum of 25% of turnover), with an 80% government guarantee to the lender, which is more generous than equivalent schemes in many other countries. The application period • Bounce Back Loan Scheme (BBLS) – BBLS has provided over £45 billion of finance through one and a half million loans to small businesses,6 many of which had not previously borrowed. Businesses in Scotland, Wales and Northern Ireland have benefitted from a total of nearly 180,000 Bounce Back Loans worth over £5 billion,7 which also aligns with their proportion of the UK business population. Loans are between £2,000 and £50,000, capped at 25% of turnover, with a 100% government guarantee to the lender to provide them with the confidence they need to support the smallest businesses. The borrower does not have to make any repayments for the first twelve months, with the government covering the first twelve months’ interest payments. The application period • Future Fund – The Future Fund has approved over £1.1 billion of convertible loans to over 1,140 businesses as of 21 February 2021.8 The loans provided range from £125,000 to £5 million and are subject to at least equal matching from private investors. The scheme closed for applications on 31 January 2021. • COVID Corporate Financing Facility (CCFF) – CCFF has provided over £34 billion of support to some of the UK’s largest firms with short-term cash-flow problems since March 2020, directly supporting businesses responsible for almost 2.5 million jobs in the UK.9 Applications closed on 31 December 2020 for this scheme, and CCFF closes to new issuance from 23 March 2021, with all commercial paper due to mature by March 2022. A.7 Annual Investment Allowance (AIA) – In November, the government announced the extension of the AIA’s temporary £1 million cap, until the end of 2021 for businesses across the UK. This ensures that the AIA continues to be set at its highest level since its introduction. The AIA allows firms 100% same year tax relief on qualifying plant and machinery investments up to an annual limit, providing more upfront support to encourage businesses to invest and grow. A.8 The Small Business Grant Fund, the Retail, Hospitality and Leisure Grant Fund and the Local Authority Discretionary Grant Fund – Between April and September 2020, the government provided over £11.6 billion worth of grants to around a million business properties in England.10 These schemes were designed to support small businesses and businesses in the sectors hit hardest by COVID-19.
A.9 Local Restrictions Support Grant (LRSG) (Closed) – Since Autumn 2020, the LRSG (Closed) scheme has been supporting businesses legally required to close as a result of COVID restrictions. Businesses in England which are legally required to close have been able to claim grants of up to £3,000 per premise per month. As of 17 January 2021, the Local Restrictions Support Grant (Closed) had provided £573 million worth of grants.11 A.10 Local Restrictions Support Grant (LRSG) (Open) – In addition, the government provided funding for English local authorities to support businesses which experienced a severe reduction in demand due to restrictions on indoor social mixing. Local authorities in areas facing such restrictions between 1 August and 5 November or between 2 December and 5 January, received funding to provide grants of up to £2,100 per premise per month to hospitality, leisure and accommodation businesses which were able to remain open during those periods. As of 17 January 2021, the LRSG (Open) had provided £95 million worth of grants.12 A.11 Closed Business Lockdown Payment – Since 5 January 2021, the Closed Business Lockdown Payment (CBLP) scheme has provided further support for businesses which are legally required to close as a result of COVID-19 restrictions. Businesses in England which are legally required to close have been able to claim one-off grants of up to £9,000 per premise, in addition to the monthly grant these businesses are eligible for through LRSG Closed. A.12 Additional Restrictions Grant (ARG) – Businesses which were not eligible for grants via the LRSG scheme may have been able to benefit from the ARG. This funding has enabled local authorities to support local businesses at their own discretion. In January, the government increased the funding for this scheme by £500 million taking the total to £1.6 billion across England. As of 17 January 2021, ARG had provided £143 million worth of grants.13 A.13 Wet-led pub grants – In December, in response to the impact of public health restrictions, the government announced that all wet-led pubs in Tiers 2, 3 or 4 at that time would receive £1,000 as a Christmas Support Payment, administered by English local authorities. As of 17 January 2021, £14 million worth of grants had been provided through this A.14 By the end of March 2021, the government expects to have paid out up to £20 billion of business grants over the financial year.15 A.15 Freezing business rates multiplier – The government has frozen the business rates multiplier in England for 2021-22 with effect from 1 April 2021, saving businesses around £600 million over the next five years. Without the freeze, the small business multiplier would have risen from 49.9p to 50.1p and the standard multiplier would have risen from 51.2p to 51.4p. The devolved administrations have received Barnett consequential funding. 10 HM Treasury, HM Treasury coronavirus (COVID-19) business loan scheme statistics, 25th February 2021 15 BEIS, Supplementary Estimates 2020-21

A.16 Commercial property – Since March 2020, the government has implemented a range of measures to support commercial property tenants and landlords, including a moratorium on landlords’ right to evict tenants for non-payment of rent that has accrued during the pandemic; suspending the use by landlords of statutory demands and winding up petitions to pursue unpaid rent that has accrued during the pandemic; extending the period of rent arrears required before landlords can use Commercial Rent Arrears Recovery (CRAR) to seize tenants’ goods in lieu of unpaid rent; and working with the financial regulators to issue a joint statement encouraging investors and lenders to exercise forbearance in relation to the impact that the pandemic may have on loan covenants. A.17 Statutory Sick Pay (SSP) Rebate Scheme – The SSP rebate scheme was announced in March 2020 to reimburse employers with fewer than 250 employees for up to 2 weeks of COVID-19 related SSP per employee across the UK. A.18 Trade Credit Reinsurance scheme – In June 2020, the government entered into a reinsurance agreement with trade credit insurers to ensure coverage for vulnerable businesses and protect against the impact of insolvency. Under the scheme, the government assumes the majority of losses arising from insurance claims between 1 April 2020 and 30 June 2021, up to a total of £10 billion in insurance claims. Up to £190 billion of cover on businesses has been provided under the scheme.16 Had the government not moved swiftly to support the market, it is estimated up to £50 billion of crucial cover on around 155,000 business would have been A.19 VAT deferral – In July 2020, the government announced that UK VAT-registered businesses did not need to pay any VAT due with VAT returns from 20 March through to the end of June 2020 before the end of March 2021. Around 600,000 businesses deferred VAT payments between March and June 2020, a cash injection of £34 billion into the UK economy.18 At the Winter Economy Plan, the government announced the VAT deferral ‘New Payment Scheme’, which is an available option for any business that took advantage of the original VAT deferral. Instead of paying the full deferred VAT outstanding by 31 March 2021, businesses can spread what they owe over up to 11 smaller monthly payments from this month. Businesses can join the service online without needing to contact HMRC. The service opened on 23 February 2021 and will close on 21 June 2021. A.20 Targeted business rates holidays – In March 2020 the government announced an unprecedented business rates holiday for eligible retail, hospitality and leisure properties for 12 months from 1 April 2020. To date, an estimated 350,000 properties have benefitted from over £10 billion of support.19 Nurseries in England have also received a one-year holiday. Business rates are England only and the devolved administrations have received Barnett consequential funding in the usual way.
16 Internal BEIS estimates, February 2021 18 HMRC, Coronavirus statistics, 25 February 2021: VAT payments deferral scheme 19 MHCLG, National Non-Domestic Rates Return 2020 to 2021: additional reliefs for 2020 to 2021, November 2020

A.21 VAT reduced rate for the UK’s tourism and hospitality sector – In July 2020, the government temporarily applied a reduced rate of VAT (5%) with effect from 15 July 2020 to goods and services supplied by the tourism and hospitality sector. This measure was extended at the Winter Economy Plan to run until 31 March 2021, to provide continued support to over 150,000 businesses and help protect over 2.4 million jobs.20 A.22 Sector-specific support – The government has put in place further sector-specific • Eat Out to Help Out scheme - introduced to help protect 1.8 million jobs in the hospitality sector21 by encouraging people to return to eating out – this scheme was used for more than 160 million meals in the UK.22 • Charities Support Package - support for charities totalling £750 million, which includes £60 million for the devolved administrations through the Barnett formula. • a Culture Recovery Fund offering a £1.57 billion lifeline to cultural organisations hard-hit by the pandemic, which includes £188 million for the devolved administrations through the • a Sports Winter Survival Package providing £300 million to support professional sports through the winter, and to protect the immediate future of major spectator sports in England, supporting clubs and governing bodies through the winter period. • a £100 million National Leisure Recovery Fund to support publicly owned leisure facilities in England during the pandemic. • £5 million in funding for 28 licensed zoos and aquariums to support them with the costs of animal care and essential maintenance in England. • A £500 million Film and TV Production Restart Scheme, a government indemnity scheme to enable the UK screen production industry to operate during the pandemic. A.23 In addition to supporting businesses through these uniquely challenging times, the government has given considerable support to individuals and families. A.24 Coronavirus Job Retention Scheme (CJRS) – As of 15 February, there have been 11.2 million jobs supported by the CJRS since its inception.23 A total of 1.3 million employers have made a claim in CJRS since it started in March 2020, totalling £53.8 billion claimed.24 A.25 Self-Employed Income Support Scheme (SEISS) – In March 2020, the government announced the SEISS to support self-employed individuals whose businesses have been impacted by COVID-19. To date, there have been three grants provided under the scheme, through which the government has supported 2.7 million people, with claims totalling £19.7 billion. As of 31 January, the SEISS provided £1.2 billion, £757 million and £570 million of support to self-employed individuals in Scotland, Wales and Northern Ireland respectively.25 A.26 Universal Credit (UC) and Working Tax Credit increase - A temporary £20 per week increase to the UC standard allowance and Working Tax Credit basic element for 2020/21 was introduced in March 2020. This means that for a single UC claimant (aged 25 or over), the 20 Non-financial business economy, UK, May 2020; ONS 2020, Business Register and Employment Survey (BRES) 21 ONS UK Business register and employment survey (BRES) 2018 22 HMRC Eat Out to Help Out 25 November 2020 23 HMRC Coronavirus Job Retention Scheme February 2021 24 HMRC Coronavirus Job Retention Scheme October 2020 25 HMRC Self-Employment Income Support Scheme February 2021

standard allowance has temporarily increased from £317.82 to £409.89 per month across England, Scotland and Wales. The Northern Ireland Executive has been funded to replicate this change in Northern Ireland. As of December 2020, there were 1.5 million households receiving tax credits and eligible to benefit from the £20 uplift.26 Furthermore, as of November 2020, there were 4.9 million households receiving Universal Credit, also benefitting from the uplift.27 A.27 Suspension of the UC Minimum Income Floor – In March 2020 the government suspended the Minimum Income Floor for self-employed UC claimants. This measure applies to England, Scotland and Wales; the Northern Ireland Executive was given additional funding to A.28 Increased Local Housing Allowance rates – In March 2020, the government increased the Local Housing Allowance rates for UC and Housing Benefit claimants so that it covers the 30th percentile of local rents. This increase meant nearly £1 billion of additional support for private renters claiming UC or Housing Benefit in 202128 and over 1.5 million households have gained just over £600 per year on average in additional support.29 For people renting in the highest demand areas, the gain will have been even higher, for example, around 500,000 claimants had an increase of more than £100 per month.30 The increased Local Housing Allowance rates apply in England, Scotland and Wales; the Northern Ireland Executive was given additional funding to provide similar support. A.29 Self-Assessment Tax Deferral - In March 2020, the government announced that Self- Assessment payments on account due by 31 July 2020 could be deferred until 31 January 2021. Intended to give immediate support to businesses and individuals by keeping cash at their disposal during the pandemic, the deferral provided an estimated £6 billion cash flow boost to approximately 1.5 million taxpayers across the UK31. A.30 ‘Self-Serve’ Time to Pay – To further support the self-employed and other taxpayers who struggled to pay their deferred July 2020 payment, at the Winter Economy Plan on 24 September the government announced that HMRC would upgrade its existing online “self- service” Time to Pay facility. The facility, accessible via the GOV.UK website, previously enabled those who needed more time to pay to secure a payment plan to pay tax liabilities up to £10,000. From 1 October 2020, any Self-Assessment taxpayer with taxes due in January could benefit from the new offer, which allows them to set up an instalment payment arrangement for up to 12 months to pay their Self-Assessment tax liabilities up to £30,000.
A.31 Mortgage and Consumer Credit Payment Holiday – The government and Financial Conduct Authority (FCA) put in place UK-wide mortgage and consumer credit payment holidays for borrowers. At the outset of the pandemic, the government announced the availability of a three-month mortgage payment holiday for borrowers facing financial difficulty, with the possibility of extending this up to six months. Following this, the FCA published similar guidance for consumer credit products. The FCA guidance was subsequently updated in November 2020, extending the application window to 31 March 2021. As it stands, borrowers can take a payment holiday for a maximum of six months, and all mortgage and consumer credit holidays must end by 31 July 2021. Over 2.7 million mortgage and over 1.7 million consumer credit payment holidays have so far been granted to borrowers impacted by COVID-19.32 26 Department for Work and Pensions, Stat-xplore release, 23rd February 2021 27 HMRC, Child and Working Tax Credit Provisional Awards, 26th February 2021 28 DWP projections, November 2020 29 DWP Admin Data, May 2020; Local Housing Allowance Data, Valuation Office Agency and Scottish and Welsh Governments, March 2020 31 HMRC, Internal estimates OBR certified, November 2020 32 UK Finance, Press Release, 20 January 2021

A.32 The Hardship Fund - The government put in place a £500 million Hardship Fund to enable local authorities in England to provide an additional discount to the Council Tax bills of working age local council tax support claimants in 2020-21. To date, this funding has been used to provide more than 3 million working-age local council tax support claimants with a A.33 Stamp Duty Land Tax (SDLT) temporary relief – To stimulate market activity and support businesses and jobs in England and Northern Ireland that rely on the property market, the government raised the nil rate band of SDLT from £125,000 to £500,000 until 31 March 2021. This means that nearly 9 out of 10 people buying a new home currently pay no SDLT at all.34 The Scottish and Welsh governments received additional funding to provide similar support as set out in their respective fiscal frameworks. A.34 Lifetime ISA (LISA) withdrawal charge reduction – To help individuals access savings if needed during the pandemic, the government temporarily reduced the LISA withdrawal charge from 25% to 20% for unauthorised withdrawals made between 6 March 2020 and 5 April 2021 across the UK. This means that LISA investors can withdraw their money for any reason over this period, only losing the government bonus earned on the amount they A.35 VAT on electronic publications – At Budget 2020, the government announced it would legislate to apply a permanent zero rate of VAT to supplies of electronic publications from 1 December 2020 to support literacy and reading in all its forms. Following the outbreak of COVID-19 and to help reduce the cost of access to electronic publications when many people have been confined to their homes and schools closed, the government legislated to bring forward the implementation date to 1 May 2020. A.36 Covid-related Statutory Sick Pay (SSP) – The government expanded SSP so that employees can claim it if they are asked to self-isolate and changed the rules so that COVID-19 related SSP is payable from day one rather than day four. This measure applies to England, Scotland and Wales, with the Northern Ireland Executive mirroring provisions. A.37 Test and Trace Support Payment – In September the government announced that all eligible people in England told to self-isolate due to COVID-19 would receive a one-off payment of £500. This is for individuals who are employed or self-employed, unable to work from home and will lose income as a result, and in receipt of certain means-tested benefits. The government has provided £110 million to local authorities to administer the scheme and make payments – including £35 million for discretionary payments according to local authorities’ own criteria up until the 31 January 2021. On 22 February 2021, the government announced additional funding, including a further £20 million per month for discretionary payments will be made available from March 2021 and expanded the scheme to cover parents who are unable to work because they are caring for a child who is self-isolating. A.38 Rough sleepers support – The government provided an additional £221 million to support rough sleepers and those at risk of homelessness through the pandemic in 2020- 21 and a further £254 million in 2021-22, including £103 million announced last year for accommodation and substance misuse. This takes total resource funding for rough sleeping and homelessness in 2021-22 in England to £676 million. A.39 The government has built a comprehensive package of support to help people of all ages search for work and build the skills they need to open up new job opportunities. 33 MHCLG, Internal Estimates based on Local Authority Monitoring Data, January 2021 34 HMRC, HMRC 2019-20 data on SDLT transactions and using OBR determinants in HMRC’s microsimulation model

A.40 Job search support – The government put in place a further £1.4 billion at SR20, to build on the Plan for Jobs commitment to increase capacity in Job Centre Plus and double the number of work coaches, on top of a 2020-21 increase in spend of £895 million at the Plan for Jobs announcement in July. There are now 10,000 additional coaches already in post.35 Work coaches are the first point of contact when someone loses their job and provide invaluable personalised support to all unemployed claimants. A.41 Kickstart scheme – The £2 billion Kickstart scheme provides young people at risk of long-term unemployment with fully-subsidised jobs to give them experience and skills. The funding available for each job will cover 100% of the age-relevant National Minimum Wage for 25 hours a week.
So far, over 120,000 Kickstart vacancies have been created by the scheme.36 Employers across Great Britain, from a range of different sectors including Construction, Arts and Entertainment, Health and Social Work, Manufacturing, Retail, Transport and public and voluntary sectors have already had their bids to take part in the A.42 Restart scheme – As announced at SR20, the £2.9 billion Restart scheme will launch in Summer 2021 to provide intensive and tailored support to over 1 million unemployed people in England and Wales and help them find work. A.43 Payments for employers who hire new apprentices – The government introduced a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st March 2021. These payments were in addition to the existing £1,000 payment the government already provides for new 16-18-year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies. A.44 High quality traineeships for young people – The government made available an additional £111 million in 2020-21 to fund high quality work placements and training for 16- 24-year olds in England. This funding is enough to triple participation in traineeships. For the first time ever, the government is funding employers who provide trainees with work experience, at a rate of £1,000 per trainee. The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below, to ensure that more young people have access to high quality training. A.45 New funding for sector-based work academies – The government provided an additional £17 million in 2020/2021 to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area. The government has already delivered the tripling of places, with 40,000 starts this year.37 A.46 New funding for National Careers Service – The government made available an additional £32 million funding over 2020-21 and 2021-22 for the National Careers Service so that 269,000 more people in England can receive personalised advice on training and work. A.47 High value courses for school and college leavers – The government made available £101 million for the 2020-21 academic year to give all 18-19-year olds in England the opportunity to study targeted high value Level 2 and 3 courses when there are not employment opportunities available to them. A.48 Skills Training – At SR20, the government announced new funding for skills and training measures to help adults in England build the skills they need to get into work, 35 DWP , Work Coaches Press Release, 25 February 2021 36 DWP , Kickstart Scheme Press Release, 25 January 2021 37 DWP , SWAP Press Release, 8 February 2021

• £127m to extend delivery of the Plan for Jobs measures for skills and training to help workers affected by COVID-19, including funding for traineeships, sector-based work academies and the National Careers Service; and • £138 million for the government’s commitment to fund in-demand technical courses for adults, and to expand the employer-led boot camp training model, in high value areas such as digital and technical skills. A.49 Expanded Youth Offer – The government is expanding and increasing the intensive support offered by DWP in Great Britain to young jobseekers, providing a guaranteed foundation of support to all those aged 18-24 in the Intensive Work Search group in Universal Credit. A.50 The Job Entry Targeted Support (JETS) – The government is providing a total of over £200 million to expand the scope of the Work and Health Programme in Great Britain to introduce additional voluntary support for those on benefits that have been unemployed for more than 3 months. JETS launched in England and Wales in October 2020 and in Scotland from January 2021. This scheme is expected to support over 250,000 people. This expansion will have no impact on the existing provision for those with illnesses or disabilities in England A.51 Job finding support service – The government is funding private sector capacity to introduce a job finding support service in Great Britain. This online, one-to-one service helps those who have been unemployed for less than three months increase their chances of A.52 Flexible Support Fund – The government is providing additional investment in the Flexible Support Fund which includes increasing the capacity of the Rapid Response Service in Great Britain. The Flexible Support Fund also provides local support to claimants by removing barriers to work such as travel expenses for attending interviews. Support for public services and controlling and mitigating the virus A.53 In addition to the substantial support offered to individuals and businesses, the government has taken extensive actions to ensure public services are supported and resilient to the pressures of this pandemic. In 2020-21, the government provided over £100 billion of support across the UK, and at SR20 the government announced a further £55 billion to support the public services response to COVID-19 in 2021-22, including £2.6 billion for the devolved A.54 Frontline health service support – The government has provided £63 billion for frontline health services across the UK to tackle the pandemic in 2020-21.39 This • around £22 billion for the Test and Trace programme40 • around £18 billion to support the NHS41 • almost £15 billion for the procurement of Personal Protective Equipment (PPE)42 • around £5 billion to support the procurement and deployment of vaccines43 38 HM Treasury, Supplementary Estimates 2020-21, February 2021 41 HM Treasury, Supplementary Estimates 2020-21, February 2021

A.55 NHS recovery – The government has also announced an additional £3 billion for next year to support the NHS recovery in England from the impacts of COVID-19.
• around £1 billion to begin tackling the elective backlog – enough funding to enable hospitals to cut long waits for care by carrying out up to one million extra checks, scans and additional operations or other procedures • funding to help to address waiting times for mental health services, give more people the mental health support they need, invest in the NHS workforce. A.56 Medicines supplies – The government has committed a further £163 million next year to increase supplies of key medicines for treating COVID-19 patients. A.57 VAT on Personal Protective Equipment (PPE) – On 30 April 2020, the government introduced a temporary zero rate of VAT for three months on the sale of PPE to help affected sectors during the initial shock of the COVID-19 crisis when the global supply of PPE did not meet demand. This temporary measure was then extended for a further three months, and following new measures introduced by the government, such as the PPE Portal, ensuring supply of COVID-19 related PPE to affected sectors from 1 November, ended as planned on 31 October. A.58 Relief for certain imported goods – In April 2020, the government introduced relief for imports of items of medical equipment, COVID-19 testing kits, medicine and PPE for use by state organisations and charities or philanthropic organisations in tackling the pandemic. This relief enabled such goods to be imported from outside the EU free of customs duties and VAT. It was backdated to apply from 30 January 2020, when the World Health Organisation declared COVID-19 a ‘Public Health Emergency of International Concern’ and ended on 31 December 2020. Since 1 January 2021, tariffs on medical products used to help fight against coronavirus have been suspended by the government in the fight against the pandemic, lowering costs on these critical items for organisations across the UK. A.59 Safe and effective vaccines represent a decisive step forward in the government’s ability to mitigate the impact of the virus and enable a strong economic recovery. The government has secured access to a diversified portfolio of eight vaccine candidates across four different vaccine types44 and has made significant progress in rolling out vaccines – by the end of February, over 20 million people in the UK had received a first dose of a vaccine.45 A.60 To fund this unprecedented national effort across the whole UK, the government has made available more than £6 billion in total to develop and procure COVID-19 vaccines. Of that, the government has pledged £733 million for the UK Vaccines Taskforce in 2021-22 to purchase successful vaccines and £128 million for research and development (R&D) and vaccines manufacturing. Further funding will be allocated from the COVID-19 reserve as needed. A.61 The government also provided £3 billion in 2020-21 for deployment costs in England. A.62 The government has made available £3 billion in education funding in England across 2020-21 and 2021-22 in response to COVID-19, including funding for schools in England to help children catch up on lost learning and supplementary support for free school meals and for skills and training measures to help young people and adults get into work. 45 Government Vaccine Statistics, 28 February 2021

A.63 To help local authorities in England respond to the impacts of COVID-19 the government has provided £6.5 billion in 2020-21, on top of £1.6 billion awarded in 2019-20, bringing the total to date to over £8 billion. Local authorities are also expected to receive over £3 billion of further support for their COVID-19 pressures in 2021- 22, taking the total support provided to over £11 billion since March 2020.46 A.64 On Monday 22 February, the government announced a further £400 million funding in England for the Contain Outbreak Management Fund (COMF) from 1 April, taking total COMF support across 2020-21 and 2021-22 to £2 billion. This is to cover further public health activities in 2021-22, and further details will be announced in due course. In March, the government will publish an updated COVID-19 contain outbreak management framework for local areas, which will set out how national and local partners will continue to work with the public at a local level to prevent, contain and manage outbreaks. This will include details of the enhanced toolkit of measures to address Variants of Concern. A.65 The government has provided over £450 million in 2020-21 to support the justice system in England and Wales, including funding to ensure safety in prisons and courts and funding to reduce backlogs in the Crown Court caused by COVID-19. A.66 The government has invested £14 billion to keep the country’s transport networks moving so that those who need to travel can do so safely and reliably. This includes an estimated £8.8 billion for rail passenger services in England. The government has also provided an additional £2 billion to the Department for Transport to ensure continued operation of the railways in Q1 of 2021-22. 46 HM Treasury, Spending Review 2020, November 2020

B.1 This annex sets out the details of the government’s financing plans in 2021-22. Further details can be found in the ‘Debt management report 2021-22’, available at B.2 The debt management objective, as set out in the ‘Debt management report 2021-22’, is “to minimise, over the long term, the costs of meeting the government’s financing needs, taking into account risk, while ensuring that debt management policy is consistent with B.3 While decisions on debt management policy must be taken with a long-term perspective, specific decisions on funding the government’s gross financing requirement are taken annually. Those decisions are announced before the start of the forthcoming financial year and can be B.4 In reaching a decision on the overall structure of the annual debt financing remit, the government considers the risks to which the Exchequer is exposed through its debt issuance decisions and assesses the relative importance of each risk in accordance with its risk appetite. For example, the government places a high weight on minimising near-term exposure to refinancing risk.
This exposure is managed partly by maintaining a sizeable proportion of long-dated debt in the portfolio, which reduces the need to refinance debt frequently. Relatedly, all else equal, this also reduces the government’s exposure to interest rate risk in the near term. The government is particularly mindful of risks, including interest rate risk, in light of the significant increase in the debt stock that has taken place during 2020, as detailed in Box [1.D]. Green gilts and retail savings product B.5 In November 2020, the Chancellor announced the government’s intention to issue its inaugural green gilt in 2021. The Budget announces further details, including that the government will issue its first green gilt in the summer, with a further issuance to follow later in 2021, as the UK looks to build out a ’green curve‘. Planned green gilt issuance for the financial year 2021-22 will total a minimum of £15 billion. The green gilt framework, to be published in June 2021, will detail the types of expenditures that will be financed to help meet the government’s environmental objectives. The government also commits to reporting on the contributions of green gilt-financed spending towards social co-benefits such as job creation

B.6 The Budget also announces plans for a green retail product to be offered through NS&I later in 2021. Proceeds from this product will not contribute towards NS&I’s 2021-22 B.7 At Budget 2018 – and as part of the government’s responsible approach to fiscal risk management – the government announced that it would look to reduce the proportion of index-linked gilt issuance in a measured fashion over the medium term as a means of reducing its inflation exposure in the debt portfolio. Consistent with this, index-linked gilts are currently planned to account for 11.1% of the government’s gilt issuance in 2021-22.1 B.8 As announced in September 2019, UKSA intends to bring the methods and data sources of the Consumer Price Index including owner occupiers’ housing costs (CPIH) into RPI. On 25 November 2020, the government and the UK Statistics Authority (UKSA) published the response to the consultation on UKSA’s proposal to address the shortcomings of the RPI measure of inflation. The Chancellor announced that, while he sees the statistical arguments of UKSA’s intended approach to reform, in order to minimise the impact of reform on the holders of index-linked gilts, he will be unable to offer his consent to the implementation of such a proposal before the maturity of the final index-linked gilt to be specifically affected, which will B.10 The Office for Budget Responsibility’s (OBR’s) March 2021 ‘Economic and fiscal outlook’ forecast for the 2021-22 central government net cash requirement (excluding NRAM ltd, Bradford & Bingley and Network Rail), which is referred to as CGNCR (ex NRAM, B&B and NR), is £240.4 billion. This measure is used in the financing arithmetic as it reflects the forecast cash requirement of the Exchequer. The relationship between public sector net borrowing and CGNCR (ex NRAM, B&B and NR) is set out in the OBR’s March 2021 ‘Economic and fiscal outlook’. B.11 The net financing requirement (NFR) for the Debt Management Office (DMO) CGNCR (ex NRAM, B&B and NR) plus any financing for gilt redemptions, and other adjustments, less the net contribution to financing from NS&I and any other in-year contributions to B.12 The NFR for 2021-22 is forecast to be £297.7 billion, • the forecast for CGNCR (ex NRAM, B&B and NR) of £240.4 billion • gilt redemptions of £79.3 billion • a planned short-term financing adjustment of -£16.0 billion resulting from unanticipated • a net contribution to financing from NS&I of £6 billion £295.9 billion. In addition, it is expected that Treasury bills will also make a small net positive contribution to debt financing in 2021-22 of £1.8 billion. 1 This percentage may change subject to transfers from the unallocated portion of issuance. Gilt issuance by method, type and maturity B.14 Decisions on the skew of gilt issuance are made annually with reference to the government’s debt management objective, as set out in the ‘Debt management report B.15 Auctions will remain the government’s primary method of gilt issuance. It is anticipated that £237.9 billion (80.4%) of total gilt sales will be issued by auction in 2021-22, and around £30.0 billion (10.1%) will be issued by syndication. The government will continue to use gilt tenders to supplement issuance by auction and syndication. B.16 Issuance by auction and syndication is currently planned to be split by maturity and type • £87.0 billion of short conventional gilts (29.4% of total issuance) • £65.4 billion of medium conventional gilts (22.1% of total issuance) • £82.8 billion of long conventional gilts (28.0% of total issuance) • £32.7 billion of index-linked gilts (11.1% of total issuance) B.17 The financing plans of the DMO include an initially unallocated portion of issuance through which gilts of any maturity or type may be issued, subject to prior notification. This unallocated portion is set at £28.0 billion (9.5% of total issuance). The unallocated portion is used in such a way as to respond appropriately to evolving market conditions in-year. In 2021- 22 the unallocated portion will be used additionally to account for the issuance of green gilts. Once an initial green gilt offering has been executed, the proceeds from that transaction (and B.18 Treasury bills for debt management purposes are forecast to constitute £60.0 billion of the total debt stock at the end of 2020-21. It is currently anticipated that net issuance of Treasury bills for debt management purposes in 2021-22 will be £1.8 billion. B.19 NS&I will have a net financing target of £6 billion in 2021-22, within a range of £3 billion to £9 billion. This target reflects NS&I’s requirement to balance the interests of its savers, the taxpayer, and the wider financial services sector. Illustrative future gross financing requirement 2022-23 to 2025-26, using the OBR’s March 2021 forecast for CGNCR (ex NRAM, B&B and NR) and taking into account current planned gilt redemptions.
CGNCR (ex NRAM, B&B and NR)2 369.7 240.4 Financing adjustment carried forward from previous financial years 3 18.4 -16.0 Gross financing requirement 485.7 303.7 Net financing requirement (NFR) for the Debt Management Office (DMO) 465.7 297.7 DMO’s NFR will be financed Short conventional gilts 167.9 87.0 Medium conventional gilts 149.6 65.4 Long conventional gilts 134.9 82.8 Unallocated amount of gilts (including future green gilt sales) 5 0.0 28.0 Total gilt sales for debt financing 485.5 295.9 Total net contribution of Treasury bills for debt financing -2.0 1.8 DMO net cash position 18.3 2.3 1 Figures may not sum due to rounding. 2 Central government net cash requirement (excluding NRAM ltd, Bradford & Bingley and Network Rail). 3 The £18.4 billion financing adjustment in 2020-21 carried forward from previous years reflects the 2019-20 outturn for CGNCR (ex NRAM, B&B and NR) as first published on 23 April 2020. The -£16.0 billion financing adjustment in 2021-22 also reflects an increase of £1.8 billion in the planned DMO end-financial year net cash position to £2.3 billion. The increase is to be financed by the £1.8 billion net contribution by Treasury bills to debt 4 Prior to publication of the end-year outturn in April each year, this financing item will mainly comprise estimated revenue from coinage. 5 In 2021-22 the unallocated portion will be used additionally to account for the issuance of green gilts. Once an initial green gilt offering has been HM Treasury, NS&I, OBR and DMO. 2022-23 2023-24 2024-25 2025-26 CGNCR (ex NRAM, B&B and NR)2 127.9 109.7 99.7 88.1 Gilt redemptions 107.1 104.5 104.4 126.2 Total illustrative gross financing requirement 235.0 214.1 204.1 214.3 1 Figures may not sum due to rounding. 2 Central government net cash requirement (excluding NRAM ltd, Bradford & Bingley and Network Rail). HM Treasury, OBR and DMO. C.1 The Office for Budget Responsibility (OBR) has published its March 2021 ‘Economic and fiscal outlook’ alongside Budget 2021. This annex reproduces the OBR’s key forecasts for the economy and public finances. Further detail and explanation can be found in the OBR’s report. Percentage change on a year earlier, unless otherwise stated 2019 2020 2021 2022 2023 2024 2025 Gross domestic product (GDP) 1.4 - 9.9 4.0 7.3 1.7 1.6 1.7 GDP per capita 0.9 -10.4 3.8 6.9 1.4 1.3 1.5 GDP level (2019=100) 100.0 90.1 93.7 100.5 102.3 103.9 105.7 Nominal GDP 3.6 -4.8 5.2 5.8 3.5 3.7 3.9 Output gap (per cent of potential output) 0.1 -0.6 -1.1 -0.4 -0.2 -0.1 -0.1 Domestic demand 1.6 -10.5 7.6 7.3 1.4 1.5 1.8 Household consumption¹ 1.1 -11.0 2.9 11.1 1.2 1.8 1.3 General government consumption 4.0 -5.7 12.0 1.4 0.8 2.3 2.1 Fixed investment 1.5 -8.7 3.7 10.8 2.6 -0.5 3.3 Business 1.1 -10.7 -2.2 16.6 3.0 -2.3 5.1 General government² 4.0 3.8 17.8 4.2 1.9 1.4 1.2 Private dwellings² 1.2 -11.7 6.1 4.9 2.3 1.9 1.4 Change in inventories3 0.1 -0.7 2.4 -1.6 0.0 0.0 0.0 Exports of goods and services 2.7 -16.7 0.2 8.1 0.3 -0.5 -0.5 Imports of goods and services 2.7 -18.1 12.5 8.1 -0.7 -0.5 0.0 Balance of payments current account Per cent of GDP -3.1 -3.7 -6.4 -6.3 -5.7 -5.4 -5.4 GDP deflator at market prices 2.1 5.9 1.1 -1.4 1.7 2.1 2.1 Employment (million) 32.8 32.7 32.3 32.4 32.8 33.1 33.2 Productivity per hour 0.2 0.5 -0.6 1.2 1.1 1.2 1.6 Wages and salaries 3.7 1.7 1.4 2.6 3.1 3.4 3.6 Average earnings4 3.0 1.1 1.9 2.7 2.2 2.8 3.5 LFS unemployment (% rate) 3.8 4.5 5.6 5.9 5.1 4.5 4.4 Unemployment (million) 1.3 1.5 1.9 2.0 1.8 1.6 1.5 Real household disposable income 1.8 -0.6 -0.2 1.4 1.2 1.6 1.5 Saving ratio (level, per cent) 6.5 16.8 14.1 6.0 5.9 5.8 6.0 House prices 1.0 3.4 5.1 -1.7 0.8 3.9 4.3 World GDP at purchasing power parity 2.8 -3.5 5.5 4.2 3.8 3.6 3.5 Euro area GDP 1.3 -7.2 4.2 3.6 2.2 1.7 1.4 World trade in goods and services 1.0 -9.6 8.1 6.3 4.3 3.8 3.6 UK export markets5 1.8 -9.1 7.9 6.0 4.2 3.7 3.5 ¹ Includes households and non-profit institutions serving households. 2 Includes transfer costs of non-produced assets. 3 Contribution to GDP growth, percentage points. 4 Wages and salaries divided by employees. 5 Other countries’ imports of goods and services weighted according to the importance of those countries in the UK’s total exports. Per cent of GDP , unless otherwise stated 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Public sector current receipts (a) 37.2 37.5 36.2 37.3 38.4 39.0 39.1 Total managed expenditure (b) 39.8 54.4 46.5 41.8 41.9 41.9 41.9 Public sector current expenditure (c) 35.6 48.2 41.3 36.5 36.5 36.6 36.6 Public sector net investment (d) 1.9 3.6 2.7 2.8 2.9 2.8 2.7 Depreciation (e) 2.3 2.6 2.5 2.5 2.5 2.5 2.5 Legislated fiscal mandate and supplementary target Cyclically adjusted net borrowing 2.6 16.5 9.7 4.2 3.3 2.8 2.7 Public sector net debt1 84.4 100.2 107.4 109.0 109.7 106.2 103.8 Current budget deficit (c+e-a) 0.6 13.3 7.6 1.7 0.6 0.1 0.0 Debt interest to revenue ratio (per cent) 3.5 2.6 2.5 2.3 2.4 2.5 2.5 Public sector net borrowing (b-a) 2.6 16.9 10.3 4.5 3.5 2.9 2.8 Cyclically adjusted current budget deficit 0.7 12.9 6.9 1.4 0.5 0.0 0.0 Primary deficit 1.3 16.0 9.5 3.7 2.6 2.0 1.8 Cyclically adjusted primary deficit 1.4 15.5 8.8 3.4 2.4 1.9 1.8 Central government net cash requirement 2.5 17.6 10.6 5.4 4.5 3.9 3.3 Public sector net cash requirement 0.8 18.9 13.2 5.5 4.6 0.9 1.5 Alternative balance sheet metrics Public sector net debt ex.
Bank of England 76.1 88.8 93.8 96.0 97.1 97.0 96.8 Public sector net financial liabilities 71.5 86.9 90.4 90.8 90.2 88.9 87.4 Treaty deficit2 2.8 17.1 10.6 4.5 3.5 3.1 3.1 Cyclically adjusted Treaty deficit 2.9 16.6 10.0 4.2 3.4 3.0 3.0 Treaty debt ratio3 84.4 107.6 107.2 107.8 109.3 110.0 110.4 Current budget deficit 14.0 278.8 171.8 40.0 15.2 3.2 0.9 Public sector net investment 43.1 75.9 62.2 67.0 70.1 71.2 72.8 Public sector net borrowing 57.1 354.6 233.9 106.9 85.3 74.4 73.7 Cyclically adjusted net borrowing 58.8 345.4 219.3 99.2 81.6 71.9 72.5 Cyclically adjusted current budget deficit 15.7 269.5 157.1 32.2 11.5 0.7 -0.3 Public sector net debt 1798 2198 2503 2631 2747 2761 2804 Net debt interest 28.2 19.6 19.9 19.4 21.6 23.7 25.0 Non-interest receipts 801.0 762.8 794.2 859.0 916.3 963.4 1,004.5 Output gap (per cent of GDP) 0.1 -0.9 -0.9 -0.3 -0.2 -0.1 0.0 1 Debt at end March; GDP centred on end March. 2 General government net borrowing. 3 General government gross debt. Uses financial year GDP . 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 November 2020 forecast 85.5 105.2 108.0 108.6 109.4 105.0 104.7 March 2021 forecast 84.4 100.2 107.4 109.0 109.7 106.2 103.8 Difference -1.1 -5.0 -0.7 0.4 0.3 1.2 -1.0 Change in nominal GDP1 -1.0 -1.5 -1.7 -0.8 -0.8 -0.6 -0.5 Change in cash level of net debt -0.1 -3.5 1.1 1.2 1.0 1.8 -0.5 November 2020 forecast 1,801 2,274 2,478 2,602 2,721 2,714 2,817 March 2021 forecast 1,798 2,198 2,503 2,631 2,747 2,761 2,804 Difference -2 -76 24 28 26 47 -12 Underlying forecast revisions -2 -80 -40 -49 -47 1 -18 PSNB (pre-measures) -47 -31 -29 -25 -18 -10 Financial transactions (pre-measures) -2 -24 -8 -26 -29 12 -18 Valuation and classification changes -9 0 6 6 8 10 Effect of Government decisions 4 64 78 73 46 6 Affecting public sector net borrowing 8 62 62 43 11 -25 Affecting financial transactions -4 2 16 30 34 31 1 Non-seasonally adjusted GDP centred end-March. 2019-201 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 November 2020 forecast 56.1 393.5 164.2 104.6 100.4 99.6 101.8 March 2021 forecast 57.1 354.6 233.9 106.9 85.3 74.4 73.7 Difference 1.0 -38.9 69.7 2.3 -15.1 -25.1 -28.2 Underlying differences2 -47.4 16.2 2.3 4.1 6.3 8.3 Receipts -16.3 3.3 -2.5 -2.6 -2.6 -1.4 Welfare spending -1.3 4.4 5.3 5.2 5.1 4.8 Debt interest spending 0.8 2.9 1.5 1.6 3.5 4.3 Other spending 3.1 5.8 -1.3 -0.3 0.3 0.5 Recostings of policies up to SR20 -33.6 -0.2 -0.6 0.1 0.1 0.1 Direct effect of policy decisions 9.0 58.9 5.5 -15.1 -27.5 -32.4 Virus related policy 3.3 43.2 -1.3 0.1 -0.3 -0.6 Public services 0.0 0.0 0.0 0.0 0.0 0.0 Support for households 0.5 27.2 -1.1 0.1 -0.3 -0.6 Support for businesses 2.8 16.0 -0.1 0.0 0.0 0.0 Non-virus related policy 5.7 15.7 6.8 -15.2 -27.1 -31.8 Spending decisions 2.8 1.1 -3.4 -3.3 -4.0 -4.5 Receipts decisions 2.9 14.6 10.2 -11.9 -23.1 -27.3 Indirect effects of decisions since SR20 -0.5 -5.4 -5.5 -4.0 -4.0 -4.1 1 Includes updates for outturn. Totals may not sum due to these updates. 2 Includes classification changes. 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Income tax1 193.6 194.8 198.2 208.7 220.0 233.2 248.2 of Pay as you earn 165.2 167.3 170.8 181.6 190.1 201.1 213.9 Self assessment 32.2 30.8 30.7 30.3 33.0 35.4 37.7 Other income tax -3.8 -3.3 -3.3 -3.3 -3.2 -3.3 -3.3 National insurance contributions 145.0 143.8 146.8 152.6 157.4 163.6 170.2 Value added tax 133.8 119.9 127.9 145.6 149.7 155.1 159.2 Corporation tax2 48.4 45.5 40.3 48.8 71.3 81.7 85.3 of Onshore 47.4 45.0 39.5 48.1 70.8 81.3 84.9 Offshore 1.0 0.6 0.8 0.6 0.5 0.4 0.4 Petroleum revenue tax -0.4 -0.3 -0.2 -0.2 -0.2 -0.2 -0.2 Fuel duties 27.6 21.5 26.0 29.2 30.1 30.6 31.2 Business rates 31.0 18.1 23.8 31.6 33.8 34.5 35.0 Council tax 36.3 38.1 39.9 41.2 42.6 44.1 45.6 VAT refunds 19.0 21.5 22.8 22.7 23.7 24.8 26.2 Capital gains tax 9.8 10.1 8.7 10.7 12.2 13.2 14.4 Inheritance tax 5.1 5.2 6.0 5.8 5.7 6.1 6.6 Property transaction taxes3 12.5 9.6 12.3 14.5 15.1 16.2 17.3 Stamp taxes on shares 3.6 3.5 3.4 3.3 3.4 3.6 3.7 Tobacco duties 9.7 9.0 9.6 9.4 9.3 9.1 9.1 Alcohol duties 11.5 12.7 12.4 12.7 13.1 13.8 14.3 Air passenger duty 3.7 0.6 1.3 2.0 3.1 4.3 4.4 Insurance premium tax 6.5 6.3 6.5 6.7 6.8 6.9 7.1 Climate change levy 2.1 1.7 2.1 2.2 2.3 2.3 2.4 Bank levy 2.5 1.9 1.0 1.0 1.0 1.0 1.0 Bank surcharge 1.5 1.2 1.2 1.3 1.3 1.4 1.4 Apprenticeship levy 2.8 2.9 2.9 3.0 3.1 3.2 3.4 Soft drinks industry levy 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Digital services tax 0.0 0.3 0.4 0.5 0.6 0.7 0.7 Other HMRC taxes4 7.3 6.7 7.0 7.5 7.6 7.7 8.0 Vehicle excise duties 6.8 6.9 7.0 7.1 7.2 7.3 7.5 Licence fee receipts 3.3 3.8 3.8 3.8 3.9 3.9 3.9 Environmental levies 8.0 9.5 10.2 10.0 10.6 10.8 11.2 EU ETS auction receipts 1.6 1.1 1.3 1.2 1.2 1.2 1.3 Other taxes 10.2 8.0 8.8 9.4 9.8 9.7 9.7 National Accounts taxes 743.0 704.2 731.6 792.8 846.1 890.0 928.2 Less own resources contribution to EU -3.2 -2.1 - - - - - Interest and dividends 26.5 23.5 25.1 26.4 28.4 30.8 33.3 Gross operating surplus 57.0 56.5 58.7 62.2 66.2 69.6 72.5 Other receipts 4.8 4.1 3.9 4.0 4.0 3.7 3.9 Current receipts 828.2 786.3 819.3 885.4 944.7 994.2 1,037.8 UK oil and gas revenues5 0.6 0.3 0.6 0.4 0.3 0.2 0.2 1 Includes PAYE, self assessment, tax on savings income and other minor components, such as income tax repayments. 2 National Accounts measure, gross of reduced liability tax credits. 3 Includes stamp duty land tax (SDLT), devolved property transaction taxes and the annual tax on enveloped dwellings (ATED). 4 Consists of landfill tax (excluding Scotland and Wales), aggregates levy, betting and gaming duties, customs duties and diverted profits tax.
5 Consists of offshore corporation tax and petroleum revenue tax. 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Public sector current expenditure (PSCE) PSCE in RDEL 320.8 445.0 413.6 362.4 377.3 393.0 409.7 PSCE in AME 470.1 566.6 520.9 503.8 520.9 540.1 561.9 Welfare spending 227.7 244.8 249.1 254.9 263.3 271.9 282.3 Virus-related income support schemes1 2.2 79.7 24.3 0.0 0.0 0.0 0.0 Locally financed current expenditure 53.7 48.3 51.5 54.6 57.0 59.3 61.0 Central government debt interest, net of APF2 36.6 23.9 24.8 24.5 27.7 31.1 33.7 Scottish Government's current spending 29.2 43.4 39.8 35.1 36.6 37.9 39.4 EU financial settlement 10.9 10.4 11.0 8.7 4.3 2.2 1.6 Net public service pension payments 6.4 1.9 0.4 2.4 2.2 1.7 1.6 Company and other tax credits 7.4 8.3 8.3 9.1 10.2 11.4 12.4 BBC current expenditure 3.5 3.6 4.1 4.1 4.0 4.2 4.2 National Lottery current grants 1.0 1.5 1.3 1.2 1.1 1.0 1.0 General government imputed pensions 1.3 1.3 1.3 1.3 1.3 1.3 1.3 Public corporations' debt interest 0.4 0.4 0.4 0.5 0.5 0.5 0.5 Funded public sector pension schemes 17.7 18.9 19.7 20.8 22.0 23.1 24.2 General government depreciation 44.6 46.7 49.6 52.2 54.7 57.3 59.8 Current VAT refunds 16.6 19.5 20.3 20.2 21.1 22.1 23.4 Environmental levies 9.0 10.4 11.3 11.1 11.7 11.8 12.1 Other PSCE items in AME 1.8 2.5 2.9 2.5 2.3 2.4 2.3 Other National Accounts adjustments 0.0 1.2 0.8 0.9 0.9 0.9 0.9 Total public sector current expenditure 790.8 1,011.6 934.5 866.3 898.2 933.1 971.7 Public sector gross investment (PSGI) PSGI in CDEL 58.0 71.0 81.8 86.6 91.5 94.8 98.6 PSGI in AME 36.4 58.3 37.0 39.4 40.3 40.8 41.2 Locally financed capital expenditure 14.7 7.2 8.8 8.7 8.2 8.3 8.4 Public corporations' capital expenditure 10.8 9.0 9.3 9.6 10.0 10.3 10.4 Student loans 10.2 10.6 11.2 11.7 12.2 12.6 13.0 Funded public sector pension schemes 0.7 2.0 2.0 2.7 2.2 1.7 1.2 Scottish Government's capital spending 4.0 4.9 5.4 5.9 6.1 6.3 6.6 Tax litigation 0.0 0.0 0.7 1.4 1.6 1.6 1.6 Calls on virus-related loan schemes 0.0 27.2 0.7 0.0 0.0 0.1 0.1 Other PSGI items in AME 0.3 -0.2 -0.7 0.8 0.8 0.7 0.7 Other National Accounts adjustments -4.3 -2.4 -0.4 -1.4 -0.9 -0.8 -0.7 Total public sector gross investment 94.4 129.4 118.8 126.1 131.8 135.6 139.8 Less public sector depreciation -51.3 -53.5 -56.6 -59.1 -61.7 -64.4 -67.0 Public sector net investment 43.1 75.9 62.2 67.0 70.1 71.2 72.8 Total managed expenditure 885.2 1,140.9 1,053.3 992.3 1,030.1 1,068.7 1,111.5 1 Includes the coronavirus job retention scheme and the self-employment income support scheme. 2 Includes reductions in debt interest payments due to the APF . AIA Annual Investment Allowance AME Annually Managed Expenditure ARG Additional Restrictions Grant BEIS Department for Business, Energy & Industrial Strategy CAPD Cyclically Adjusted Primary Deficit CBILS Coronavirus Business Interruption Loan Scheme CBLP Closed Business Lockdown Payment CCFF COVID Corporate Financing Facility CDEL Departmental Capital Totals CGNCR Central Government Net Cash Requirement CHAPS Clearing House Automated Payments System CJRS Coronavirus Job Retention Scheme CLBILS Coronavirus Large Business Interruption Loan Scheme COMF Contain Outbreak Management Fund COP26 2021 United Nations Climate Change Conference EMI Enterprise Management Incentives ESS Electronic Sales Suppression FCA Financial Conduct Authority IFRS16 International Financial Reporting Standard 16 IFS Institute for Fiscal Studies IMF International Monetary Fund ISA Individual Savings Account ITSA Income Tax Self Assessment JETS Job Entry Targeted Support LRSG Local Restrictions Support Grant MMC Modern Methods of Construction

MPC Monetary Policy Committee NDNI New Deal for Northern Ireland NIC National Infrastructure Commission NICs National Insurance Contributions NIHE Northern Ireland Housing Executive NS&I National Savings and Investment NSTD North Sea Transition Deal ONS Office for National Statistics PPE Personal Protective Equipment PSCE Public Sector Current Expenditure PSGI Public Sector Gross Investment PSNB Public Sector Net Borrowing PSNI Public Sector Net Investment RDEL Departmental Resource Totals SAR Shared Accommodation Rate SEISS Self-Employment Income Support Scheme SITR Social Investment Tax Relief SME Small and Medium-sized Enterprise TCA Trade and Cooperation Agreement TME Total Managed Expenditure UKAR UK Asset Resolution Limited

earlier, unless otherwise stated)

additional measures announced for implementation in 2021 estimated by

This document can be downloaded from If you require this information in an alternative format or have general enquiries about HM Treasury and its work, public.enquiries@hmtreasury.gov.uk

This document can be downloaded from If you require this information in an alternative format or have general enquiries about HM Treasury and its work, public.enquiries@hmtreasury.gov.uk