The Chancellor's new plans for Government spending in the face of the largest contraction in the nation's economy for 300 years were met with both praise and anger in Cumbria.

Addressing the House of Commons yesterday, Rishi Sunak declared that the UK's Covid-19 "health emergency is not over", and that its "economic emergency has only just begun".

He explained that the national economy will contract this year by 11.3 per cent, "the largest fall in 300 years".

In response, Mr Sunak announced a raft of new measures intended to help engineer more rapid economic recovery across the UK.

These included a further £55 million to help with the coronavirus response, including £18 billion for mass testing, Test and Trace, PPE and vaccines, as well as £3 billion to support NHS recovery.

He also announced a funding boost for the NHS to the tune of £6.6 billion next year, and more money for schools, promising that every pupil in the country will see a year-on-year funding increase of at least 2 per cent.

Local authorities will get an increase in core spending power of an estimated 4.5 per cent, and a new "levelling up" fund will be created, worth £4bn in England, to finance infrastructure projects.

Another key announcement was a pay increase for more than 1m doctors, nurses and others working in the NHS, along with a pay rise for the 2.1m public sector workers who earn below £24,000, of at least £250.

The national living wage is also increasing by 2.2 per cent, to £8.91 an hour, for those age 23 and over. There is also set to be an increase the national minimum wage.

MP for Penrith and the Border, Dr Neil Hudson, described the plan as a "comprehensive package" to help the "entire UK" recover from the impact of Covid-19.

“I am delighted that the Government is investing in our vital public services and also delivering a once-in-a-generation investment in infrastructure of £4bn that will create jobs, grow the economy and really help our communities."

However, Paul Williams, chairman of the Cumbria Police Federation, which represents rank and file officers in the county, said he was "disgusted" that the pay rise for NHS workers will not be extended to police officers.

“We are utterly disgusted by the Chancellor’s view that after the work we have done, a pay rise cannot be justified," he said.

“24/7 our members have been putting themselves at risk protecting the public and the Government, working long hours in dangerous conditions.

“This is insulting and demonstrates complete disregard for the sacrifices made by our members.”

Mr Williams described yesterday's spending review as "kicking" police officers "again", after years of "decimated numbers, cuts in pay and low morale".

“During this pandemic our members have not only had to deal with the day to day policing but put themselves at incredible risk trying to help save lives, suffering a huge rise in assaults on themselves, dealing with very distressing situations, and having to deal with individuals who have weaponised Covid against them."

Mr Williams said that officers are "tired and run down", and that yesterday's announcement "hardly provides motivation" for those considering joining police forces, in spite of the Government's commitment to recruit 20,000 more police officers by 2023.

"And more so, for cops to remain in their role facing such dangers for no reward," he added.

“We accept that in such a situation action has to be taken to address the financial strain however going straight to freezing pay of public sector workers as what seems to be a default position without considering other very large and costly Government projects is the lazy option and radiates contempt towards those who perform such a dangerous occupation.”

One of the announcements from the Chancellor was welcomed locally was news of a £3bn three-year "Restart Programme", intended to help the long-term unemployed retrain for work.

This was welcomed by the chief executive of the Cumbria Chamber of Commerce, Rob Johnston.

“The Restart Programme should help to re-skill workers that will be needed as the economy recovers," he said.

“That’s especially important in Cumbria because our working-age population is shrinking and some sectors of our economy have become dependent on EU migrant workers who will be frozen out by the new points-based immigration system."

Mr Johnston also welcomed the £4bn "levelling up" fund as an "opportunity" for the county, but urged swift action locally to make the most of it.

“This represents a great opportunity for Cumbria," he said. “It’s vital that the powers that be act quickly because, I suspect, it will be a case of first-come first-served.”

However, Mr Johnston was less positive about the announced increase in the National Living Wage, describing himself as "uneasy" about the news.

"It will hit retail and hospitality particularly hard and they are the sectors hurt most by Covid," he said.