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Spending Review key points: From minimum wage rise to unemployment forecasts – what we learnt from Rishi Sunak

Spending Review key points: From minimum wage rise to unemployment forecasts – what we learnt from Rishi Sunak

ritain is facing an “economic emergency”, the Chancellor warned today as he announced a pay freeze for most public sector workers and cuts to foreign aid funding.

Addressing the House of Commons, Mr Sunak admitted: “Our health emergency is not yet over. And our economic emergency has only just begun.”

Here we set out the key points from his sobering Spending Review — starting with what it actually is.

<p>Rishi Sunak set out his Spending Review before MPs</p>

Rishi Sunak set out his Spending Review before MPs

/ PA )

What actually was the Spending Review?

On Wednesday, the Treasury set out how much taxpayers’ money will be allocated to the various branches of government and the devolved administrations in Scotland, Wales and Northern Ireland.

Typically this is a multi-year settlement but, because of the economic uncertainty caused by Covid-19, Mr Sunak only set out the figures for 2021/22.

What was announced?

Public sector pay

– More than 1 million nurses, doctors and others in the NHS will get a pay rise from next year, but for the rest of the public sector any increase will be paused.

– This will affect around 2.1 million people, including firefighters, teachers, the armed forces, police, civil servants, council and Government agency staff.

– However, the lowest paid public sector staff – those earning below £24,000 – will see their pay increased by at least £250.

National minumum wage and unemployment

– For those in work, the national living wage will increase by 2.2 per cent to £8.91 an hour. It had been expected to increase to as much as £9.21.

– It will also be extended to 23 and 24-year-olds for the first time.

– The Government said the increase was likely to benefit around two million of the lowest-paid workers.

– Unemployment is forecast to hit 2.6 million by the middle of 2021, official forecasts from the Office for Budget Responsibility (OBR) said.

– To help cope with this, the Chancellor set out a nearly £3 billion Restart programme to help get people back into work.

Economic growth

– It will take until the end of 2022 for the economy to return to its pre-pandemic size, according to the Chancellor.

– The economy will contract this year by 11.3 per cent – the largest fall in output for more than 300 years, according to OBR forecasts.

– It expects the economy to start recovering once Covid restrictions are lifted, growing by 5.5 per cent next year, 6.6 per cent in 2022, then 2.3 per cent, 1.7 per cent and 1.8 per cent the following years.

– The pandemic is likely to have caused “long-term scarring”, meaning in 2025, the economy will be around three per cent smaller than expected in the March Budget.

Government spending and cuts

– Mr Sunak said the Government was spending £280 billion this year to get the country through the coronavirus crisis.

– Total Government department spending next year will be £540 billion, with day-to-day departmental spending rising, in real terms, by 3.8 per cent.

– A new UK infrastructure bank – based in the north of England – to finance major new projects is set to be established.

– A £4 billion “levelling up” fund to finance local infrastructure improvement projects will also be created, Mr Sunak said.

– The Chancellor said that through the Barnett formula, Scottish Government funding will increase by £2.4 billion and Welsh Government funding by £1.3 billion, with £0.9 billion for the Northern Ireland Executive.

– The overseas aid budget will be cut to 0.5 per cent of gross national income in 2021, breaking a Tory manifesto commitment first enshrined in law by David Cameron. Mr Sunak said the Government’s “intention” was to return to 0.7 per cent when the fiscal situation allows. In 2019 the total aid budget was £15.2 billion.

Borrowing and debt

– The UK is forecast to borrow a total of £394 billion this year, equivalent to 19 per cent of GDP – the highest recorded level of borrowing in peacetime history, according to Mr Sunak.

– Underlying debt is forecast to be 91.9 per cent of GDP this year and is predicted to continue rising, reaching 97.5 per cent of GDP in 2025/26.

How has the Spending Review been received?

Baroness Sugg, whose brief included sustainable development, said pledges should be kept in the “tough times as well as the good” and branded the move “fundamentally wrong”.

Shadow chancellor Anneliese Dodds condemned the pay freeze for public sector workers and claimed the Spending Review “takes a sledgehammer to consumer confidence”.

However, Confederation of British Industry chief economist Rain Newton-Smith said the Spending Review “lays the foundations for a brighter economic future” but “ambition must be matched by action on the ground”.

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More than 3 million Covid vaccines administered in England in five weeks

More than 3 million Covid vaccines administered in England in five weeks

ore than 3 million people in England were vaccinated against coronavirus in just over a month, new figures show.

A total of 3,189,674 Covid-19 jabs were administered in the country between December 8 and January 14, according to provisional NHS England data released on Friday.

This includes first and second doses.

It marks a rise of 279,647 on Thursday’s figures, meaning almost 280,000 people were inoculated against the disease in 24 hours.

Of the latest total, 2,769,164 were first doses of the vaccine – a rise of 274,793 on Thursday’s count, while 420,510 were second doses – an increase of 4,854.

The figures come as the Government prepares to rapidly scale up its mass-vaccination programme – administering as many as half a million jabs from next week, according to reports.

Ministers are confident that the UK will have enough doses to hit Boris Johnson’s target of inoculating the 15 million most vulnerable Britons by February 15.

A senior Whitehall source told The Times that the pace of the scale-up could mean that all 32 million over-50s receive their first vaccine dose by mid to late March.

Boris Johnson: Top four priority groups will receive Covid vaccine by February 15th

The postitive developments come after the Government was sharply criticised over the distribution of vaccines across the country.

A total of 447,329 doses were administered in the Midlands between December 8 and January 10, with 387,647 people receiving at least one injection.

But London had delivered just 237,524 doses, sparking “huge concern” from mayor Sadiq Khan.

The NHS England figures for the month indicated that about half of people aged 80 and over in north-east England and Yorkshire had received their first dose.

By contrast just three in 10 people aged 80 and over in eastern England had received their first jab, with a similar proportion in London.

Downing Street defended the operation, with the Prime Minister’s official spokesman telling reporters: “We’ve rolled out the vaccination programme across the country and we’ve ensured that every area receives a fair share of the vaccinations and we will continue to do that.

“You will continue to see the vaccination programme accelerate through this month and throughout February and the PM’s been clear that we will ensure there is a vaccine centre close to everybody by the end of the month.”

The North East and Yorkshire was just behind the Midlands in terms of doses administered, with 433,045.

Mr Khan responded to the discrepencies by saying: “I am hugely concerned that Londoners have received only a 10th of the vaccines that have been given across the country.

“The situation in London is critical with rates of the virus extremely high, which is why it’s so important that vulnerable Londoners are given access to the vaccine as soon as possible.”

High street pharmacies start vaccines as UK records worst day of Covid deaths

A spokesman for the NHS in London said: “We have more than 100 vaccination sites up and running across London, including the NHS Covid-19 vaccination centre in the ExCeL London, and more are opening all the time.

“London is getting its fair share of vaccine supply for the priority groups we have to vaccinate by mid-February.”

Mr Johnson has previously acknowledged that while parts of the country were doing “incredibly well” in vaccinating people it was “less good” in other areas.

Up to January 10, 1,036,605 people aged 80 or over had received a first dose, as had 960,699 under-80s.

Separate figures from NHS England show nearly a quarter (23 per cent) of first doses in England up to January 7 went to people aged 49 and under.

Just over half (53 per cent) went to people aged 80 and over.

Some 12 per cent went to people aged 50-59, six per cent to those aged 60-69, and six per cent to those aged 70-79.

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Children’s mental health: The hidden crisis of Covid laid bare

Children’s mental health: The hidden crisis of Covid laid bare

undreds of thousands of children and adolescents who had no diagnosable mental health problems before the pandemic will need care and support this year as a consequence of the crisis, an Evening Standard investigation has revealed.

With cases already at unprecedented levels, the Centre for Mental Health says a new cohort of 500,000 previously healthy children under 18 will require mental health care due to the devastating economic, health and family pressures caused by the  virus crisis.

The centre’s research incorporates 2020 data from NHS Trusts and NHS England to forecast additional demand for mental health services.

Leaders of  secondary and primary schools across London who were approached in our special investigation also spoke of the unfolding crisis.

It comes on top of already troubling data from NHS Digital that shows a 50 per cent rise in mental disorders over the last three years, with one in six children (16.7 per cent) in England aged five to 16 having a “probable mental disorder” in 2020, up from one in nine in 2017 — having been steady at 10 per cent for the previous decade.

It means that today in a class of 24, an average of four students have serious mental health issues  — defined as emotional disorders and behavioural disorders that impair their ability to live a normal life.

The  Standard has sought to understand the crisis, speaking to students, parents, counsellors, head teachers and mental health experts to shine a light on what some are calling “the hidden mental health crisis of the Covid generation”.

Our investigation has revealed:

  • A 109 per cent rise in reported incidents of self-harm and a 68 per cent rise in suicidal thoughts in secondary schools during the 2020 autumn term, according to Place2Be charity, the UK’s leading provider of school-based mental health services.
  • Children as young as five reporting self-harm and suicidal thoughts to counsellors.
  • A tripling in eating disorder incidents reported by adolescents.
  • A spike in adolescents attending A&E with mental health emergencies.
Children’s mental health: The hidden crisis of Covid laid bare
( Evening Standard )

Head teachers warned that “the worst is yet to come”, with some schools reporting a doubling in the number of students they have referred to child and adolescent mental health services this academic year over last.

( Evening Standard )

This will heap pressure on a care system already stretched beyond breaking point. Only around 25 per cent of young people with diagnosable mental health problems currently get the care they need on the NHS.

For those youngsters who do get seen, waiting times in the capital can stretch from two to three months — the longest being a six-month wait at the West London Mental Health Trust, according to the Education Policy Institute.

It creates a compelling case for the Government to put more resources into child and adolescent mental health outpatient services, the Cinderella of the health sector where just £500 is spent per child with a serious mental health problem per year compared with £275,000 per cancer patient.

For information and support call Mind on 0300 123 339

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Children’s mental health crisis: Youngsters pushed over the edge by lockdown trauma

Children’s mental health crisis: Youngsters pushed over the edge by lockdown trauma

he pandemic’s toll on mental health turned a loving boy into an aggressive and fearful child — and he is far from alone. Here, David Cohen examines the growing crisis

During the first lockdown, Jason was not flagged by his school as having any sort of mental health problem, but this time round is different.

The young teenager, who attends Kensington Aldridge Academy in west London, started to fall apart towards the end of the 2020 autumn term — he would abruptly walk out of class, shouting, kicking doors and punching the walls.

When Louis Levin, the school’s pastoral adviser, spoke to him, he encountered “a new Jason” who was also being rude and aggressive to his mother at home.

“This was a significant change,” said Levin. “Before the pandemic, he was an enthusiastic kid, a bit of a worrier but nothing serious, who loved his mum and had a good attitude.” With the new lockdown announced this month, things have got even worse.

Jason told Levin: “My mum is anxious and depressed and sometimes she spends the entire day in bed. She expects me to look after my siblings but they proper get on my nerves and I refuse to do it.”

<p>Mounting crisis: Louis Levin at Kensington Aldridge Academy. “There are many, many children who are struggling with their mental health”</p>

Mounting crisis: Louis Levin at Kensington Aldridge Academy. “There are many, many children who are struggling with their mental health”

/ Matt Writtle )

Levin added: “He is angry with his mother but also worried about her. He told me that his father no longer sends money to support them and he worries about that as well. He gets scared because he is having some very dark thoughts.

“We told him to come into school because he’s a vulnerable child going through a lot and it’s frankly untenable for his mental health to be at home all the time.

“Every day we try to build him up and give him hope but he looks crumpled and cries and says he can’t see an end to it. I can’t get a word out of him some days.

“I am sad to say, but there are many, many children in our school like Jason who are struggling with their mental health for the first time.”

Jason is one of more than 500,000 previously healthy children who have been pushed over the edge by the pandemic and who will need mental health support for the first time, say the Centre for Mental Health.

It’s a fast-changing, deteriorating picture, but the charity, using 2020 NHS data and academic research, estimate that 1.5 million children under 18 will either need new or additional mental health support as a consequence of the pandemic — of which one-third are completely new cases.

Leaders of other secondary and primary schools across London who were approached in our special investigation spoke of the unfolding crisis in their schools.

( Jeremy Selwyn )

Andrea MacDonald, deputy head at Beacon High in Islington, said: “We are seeing a very significant increase of children with mental health problems. Normally we make 15 referrals to child and adolescent mental health services (CAMHS) a year, but this academic year we are already at 25, double the amount of this time last year.”

Emilie Haston, headteacher of Goldfinch Primary School in Wandsworth, said: “We have a large number of children who before Covid did not have mental health problems but since the start of the pandemic have developed one.

“In some cases, you expect it because children live with parents who themselves have mental health issues, but in other instances you could not have predicted it.

“Some children have suffered memory loss of areas of the syllabus they’d already covered. Trauma can do that, it affects memory. And we have yet to see the impact of this lockdown. The worst is yet to come.”

The latest NHS data shows a sharp spike in children with diagnosable mental health problems, up 50 per cent from one in nine in 2017 to one in six in 2020.

( Evening Standard )

The stresses of the second and third lockdowns have yet to impact the data, but what is known is that low-income families fare worst, with children in the poorest 20 per cent of households four times as likely to develop problems as children in the wealthiest 20 per cent.

Stephen Scott, professor of child health and behaviour at the Institute of Psychiatry, Psychology and Neuroscience at King’s College London, said: “The level of child and adolescent mental health problems we are seeing is unprecedented, the worst in over 50 years.

There has been something like a 50 per cent rise in children with a diagnosable mental health disorder, much of it since the pandemic. Most people are unaware how bad things are because it is largely hidden behind closed doors.”

The Government and the NHS, he added, are woefully unprepared. “The scandal is that the NHS have decided to spend very little on child and adolescent mental health, which has led to a widening deficit of care.

“The NHS spend for outpatients is about £50 per child per year, which is why CAMHS is so emaciated. Only about a quarter of children with the disorder level get seen by CAMHS with 75 per cent untreated. And that’s in normal times.”

The deficit of care has spilled over into accident and emergency units.

( Evening Standard )

An A&E consultant who runs the floor at one north London hospital told the Standard: “We have seen a steady increase in adolescents coming into A&E with mental health crises. After people coming in with Covid or chest pains, it’s the biggest group we see.

“It’s sad because apart from immediate medical support for overdoses or self-harm, there is little we can do. It’s like young people have been hit by a tsunami of issues with a very long tail. They need long-term support to help them.”

Why has children’s mental health deteriorated so quickly? Reasons include being locked down with parents and siblings under pressure from lost jobs, illness, domestic abuse, excessive parental anxiety, lack of usual outlets and overcrowding. 

For information and support call Mind on 0300 123 339

But Ricky Emanuel, a child, adolescent and adult psychotherapist and formerly head of child psychotherapy services at the Royal Free, said there was another critical reason driving the “astronomical increase”.

He explained: “For adolescents, the friendship group is key. It is their oxygen. They need the group to grapple with problems and manage their internal processes and different people in the group play different roles.

“This is so much more than missing their friends. They need them, they are dependent on them and it has to be in person — not just via social media. If you take that away, if you cut them adrift, they can unravel and fragment, which is why you are seeing so many struggle.”

  • The names of the children in this article have been changed

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Brazil Covid variant is NOT in UK, says Grant Shapps as South America travel ban begins

Brazil Covid variant is NOT in UK, says Grant Shapps as South America travel ban begins

On Friday, he reassured the public that so far the strain has not been detected in Britain.

Asked whether the variant was already circulating in the country, Mr Shapps told BBC Radio 4’s Today Programme: “Not as far as we are aware, I think, at this stage.

“There haven’t been any flights that I can see from the last week from Brazil, for example.”

Brazil Covid variant is NOT in UK, says Grant Shapps as South America travel ban begins
( PA )

Mr Shapps also attempted to reassure the public that there was no sign that Covid vaccines would prove ineffective against the new variant.

However, he added that he did not want to see the country “tripped up” when rapid progress was being made with national mass-vaccination efforts.

The minister told Sky News: “Scientists aren’t saying that the vaccine won’t work against it (the mutation).

“But we are at this late stage now, we have got so far – we have got jabs into the arms of three million Brits now – that’s more than France, Spain, Germany, Italy put together, and we do not want to be tripping up at this last moment.

“Which is why I took the decision, as an extra precaution, to ban those flights entirely.”

What is known about the Brazilian coronavirus variant?

His comments came as epidemiologist Dr Mike Tildesley suggested the South American travel ban – which came into force at 4am on Friday – would “minimise the risk” of the new variant entering the UK.

Speaking on BBC Breakfast, Dr Tildesley suggested the restrictions could have been introduced earlier, saying: “We always have this issue with travel bans of course, that we’re always a little bit behind the curve.

“With Covid we need to remember that when you develop symptoms you could have been infected up to a couple of weeks ago.

“So it’s really important that these travel bans come in quickly so that we can prevent any risk.

“My understanding is that there haven’t really been any flights coming from Brazil for about the past week, so hopefully the immediate travel ban should really minimise the risk.”

He added that scientists will know “in the next few days” whether the ban has had “a significant effect”.

Dr Tildesley also stressed that although scientists “don’t believe there is anything to worry about” in terms of vaccine efficacy, the higher transmissibility could mean “people potentially might end up developing severe symptoms more rapidly which could cause more issues with our health service”.

The ban also covers the Central American state of Panama and Portugal – due to its strong travel links with Brazil – and the former Portuguese colony of Cape Verde.

Scientists analysing the Brazilian variant believe the mutations it shares with the new South African strain are associated with a rapid increase in cases in locations where there have already been large outbreaks of the disease.

British and Irish nationals and others with residence rights are exempted from the measure, which was backed by the Scottish Government, though they must self-isolate for 10 days along with their households on their return.

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Pigeon believed to have travelled from US to Australia may be spared death penalty

Pigeon believed to have travelled from US to Australia may be spared death penalty

pigeon believed to have travelled from the US to Australia may now be spared the death penalty after his identifying leg band was declared a fake.

The pigeon, named Joe after US President-elect Joe Biden, made international headlines after he was believed to have travelled 8,000 miles across the Pacific.

Australia’a notoriously strict quarantine authorities had set out to catch and kill Joe due to the risk of bird disease spread from the US to Australia.

However, the band that identified Joe as an Oregon racing pigeon has now been declared a counterfeit.

Deone Roberts, sport development manager for the Oklahoma-based American Racing Pigeon Union, said on Friday the band number belongs to a blue bar pigeon in the United States and that is not the bird pictured in Australia.

“The bird band in Australia is counterfeit and not traceable,” Ms Roberts said. “It definitely has a home in Australia and not the US.”

“Somebody needs to look at that band and then understand that the bird is not from the US. They do not need to kill him,” she added.

<p>Pigeon racing has seen a resurgence in popularity</p>

Pigeon racing has seen a resurgence in popularity

/ AP )

Pigeon racing has seen a resurgence in popularity in Australia, and some birds have become quite valuable.

Acting Australian Prime Minister Michael McCormack said he did not know what the fate of Joe would be.

But there would be no mercy if the pigeon were from the United States.

“If Joe has come in a way that has not met our strict biosecurity measures, then bad luck Joe, either fly home or face the consequences,” Mr McCormack told reporters.

But Martin Foley, health minister for Victoria state where Joe lives, called for the federal government to spare the bird.

“I would urge the Commonwealth’s quarantine officials to show a little bit of compassion,” Mr Foley said.


Australian quarantine authorities have a  stern reputation

/ AP )

Melbourne resident Kevin Celli-Bird, who found the emaciated bird in his backyard, was surprised by the development and pleased that the bird he had named Joe might not be destroyed.

“Yeah, I’m happy about that,” Mr Celli-Bird said, referring to news that Joe probably is not a biosecurity threat.

Mr Celli-Bird had contacted the American Racing Pigeon Union to find the bird’s owner based on the number on the leg band. The bands have both a number and a symbol, but Mr Celli-Bird didn’t remember the symbol and said he can no longer catch the bird since it has recovered from its initial weakness.

Australian quarantine authorities have a  stern reputation. In 2015, the government threatened to euthanise two Yorkshire terriers, Pistol and Boo, after they were smuggled into the country by Hollywood star Johnny Depp and his ex-wife Amber Heard.

Faced with a 50-hour deadline to leave Australia, the dogs made it out in a chartered jet.

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