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The start of a big fiscal relaxation

Sajid Javid has announced a big increase in public spending, but this is unlikely to stand in the way of significant tax cuts in the next Budget, as David Smith reports.

Were it not for the fact that plenty of other things are going on in politics – too many things – it is fair to say that the first big announcement by the new chancellor Sajid Javid his spending round for the 2020/21 fiscal year would have been more than just a one-day wonder. I make no apologies therefore for returning to some of its implications.

The Javid spending review was unusual. Though the Treasury had been working on a one-year review for some time once it was clear that Brexit was dragging on and eating into the time available for a normal three-year review the review ended in a...

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