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Rising Covid-19 costs could derail Treasury spending plan, think tank warns

The Chancellor would need to find an additional £20bn by 2023-24, if he wants to meet the costs of earlier government pledges on the NHS, police and schools

The government will be forced to revise its spending plans or make cuts in upcoming budget decisions if future costs associated with the coronavirus pandemic reach even a quarter of their current £70bn allocation, the Institute for Fiscal Studies has warned.

In a review published on 29 September, IFS economist Ben Zaranko said Chancellor Rishi Sunak’s wish to hold a comprehensive spending review this year would prove difficult to bring to fruition.

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