Official Development Assistance (ODA) Spending - The government remains committed to returning to spending 0.7% of Gross National Income (GNI) on ODA when on a sustainable basis the government is not borrowing for day-to-day spending and underlying debt is falling. In accordance with the International Development (Official Development Assistance Target) Act 2015, the government will continue to review and confirm each year whether a return to spending 0.7% of GNI on ODA is possible against the latest fiscal forecast. In the meantime, the government’s plans assume ODA spending will be around 0.5% of GNI. Reforms to Research and Development (R&D) tax reliefs - For expenditure on or after 1 April 2023, the Research and Development Expenditure Credit (RDEC) rate will increase from 13% to 20%, the small and medium-sized enterprises (SME) additional deduction will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%. These rate changes will be legislated for in the Autumn Finance Bill 2022. This reform ensures that taxpayer support is as effective as possible, improves the competitiveness of the RDEC scheme, and is a step towards a simplified, single RDEC-like scheme for all. The government will consult on the design of a single scheme, and ahead of Budget work with industry to understand whether further support is necessary for R&D intensive SMEs, without significant change to the overall cost envelope for supporting R&D. As previously announced at Autumn Budget 2021, the R&D tax reliefs will be reformed by expanding qualifying expenditure to include data and cloud costs, refocusing support towards innovation in the UK, and targetting abuse and improving compliance. These changes will be legislated for in Spring Finance Bill 2023.

Public Sector Finances, UK:September 2022, Office for National Statistics, October 2022 & Economic and Fiscal Outlook, Office for Budget Responsibility, November 2022. ↩While increasing tax revenues, the government is taking a responsible and disciplined approach to public spending which prioritises vital public services and infrastructure to drive economic growth.

Additional costs associated with extending student finance eligibility to individuals on Ukraine visa routes from 1 August 2022Autumn Budget and Spending Review 2021:A Stronger Economy for the British People, UK Government, September 2021. ↩

Public sector pay is a significant proportion of government departments’ resource DEL budgets. It is important that pay awards deliver value for the taxpayer whilst also recognising the vital importance of public sector workers. For 2022-23, the government accepted the pay recommendations of the independent Pay Review Bodies for the NHS, teachers, police and the armed forces. This delivered the highest uplifts in nearly twenty years, with most awards targeted towards the lower paid. The government is seeking recommendations from Pay Review Bodies where applicable for pay awards for 2023-24. The government recognises the importance of supporting upskilling throughout people’s lives, and so is introducing the Lifelong Loan Entitlement from 2025 to provide more flexible finance for adults to study throughout their lives. Investment Includes energy price guarantee cap, energy bill relief scheme, and cost-of-living support measures announced on May 27 Review of Integrated Care Boards - The government has asked former Health Secretary Patricia Hewitt to lead an independent review into oversight of Integrated Care Boards in England and how they can best work with autonomy and accountability.investing in the UK’s people, including by ensuring that they have the skills that businesses and public services need Investing in high quality infrastructure is crucial for boosting economic growth and productivity. Infrastructure spreads opportunity and prosperity across communities by connecting people to new jobs through faster and more reliable routes. Infrastructure is also the foundation for securing our energy independence and transitioning to net zero.