In addition, several spending categories have been lower than expected, including debt interest spending (in line with lower RPI inflation) and welfare spending.
Other budget measures added up to a net giveaway of about ⅓ percent of GDP (£6bn) in 2019, which will diminish and ultimately reverse over time to become a small net takeaway by FY2023. The measures included minor tax cuts (a rise in the income tax personal allowance and a one-year freeze in fuel duty), a small increase in non-health related spending (including an additional £0.5bn for Brexit preparations), and more generous payments under the Universal Credit scheme (a flagship social assistance program designed to roll multiple separate programs into a single entity). These will be partially offset by some tax increases (including a new tax on large digital service providers).
The largest year-on-year increase in public spending relative to the previous path is in FY2019, resulting in a fiscal stimulus in that year.
The adverse scenario for the UK assumed 3.3 percent reduction in GDP, 4.5 percentage point increase in unemployment, and close to 30 percent decline in residential and commercial real estate prices.