Reeves to say spending review will reflect ‘priorities of working people'
The Chancellor is expected to focus on 'Britain's renewal' as she sets out her spending plans for the coming years, with big increases for the NHS, defence and schools.
Arguing that the Government is 'renewing Britain', she will acknowledge that 'too many people in too many parts of the country are yet to feel it'.
She will say: 'This Government's task – my task – and the purpose of this spending review is to change that, to ensure that renewal is felt in people's everyday lives, their jobs, their communities.'
Among the main announcements is expected to be a £30 billion increase in NHS funding, a rise of around 2.8% in real terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5% of GDP.
But Wednesday could present a tough prospect for other government as the Chancellor seeks to balance Labour's commitments on spending with her fiscal rules.
The Institute for Fiscal Studies has already warned that any increase in NHS funding above 2.5% is likely to mean real-terms cuts for other departments, or further tax rises to come in the budget this autumn.
This could mean a budgetary squeeze for areas such as local government, the justice system and the Home Office, despite reports that policing would receive an above-inflation settlement.
The Chancellor has already insisted that her fiscal rules remain in place, along with Labour's manifesto commitment not to increase income tax, national insurance or VAT.
She will say on Wednesday: 'I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.
'These are my choices. These are this Government's choices. These are the British people's choices.'
Other announcements expected on Wednesday include £39 billion for social and affordable housing over the next decade as the Government aims to meet its target of building 1.5 million new homes by the next election.
The Treasury said this would see annual investment in affordable housing rise to £4 billion by 2029/30, almost double the average of £2.3 billion between 2021 and 2026.
The additional spending has been welcomed by homelessness charities, with Crisis calling it 'a determined political signal that housing really matters' and Shelter describing the move as 'a watershed moment in tackling the housing emergency'.
The Chancellor has also already announced some £15.6 billion of spending on public transport in England's city regions, and £16.7 billion for nuclear power projects, the bulk of which will fund the new Sizewell C plant in Suffolk.
There is also expected to be an extension of the £3 bus fare cap until March 2027 and an extra £445 million for upgrading Welsh railways.
But one of the big losers from the spending review could be London, which is not expected to receive funding for any significant infrastructure projects or powers to introduce a tourist levy – both key requests from Mayor Sir Sadiq Khan.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald Scotland
an hour ago
- The Herald Scotland
Starmer accused of U-turn after ordering inquiry into grooming gangs
Earlier this year, the Government dismissed calls for a public inquiry, saying its focus was on putting in place the outstanding recommendations already made in a seven-year national inquiry by Professor Alexis Jay. Reform UK leader Nigel Farage described the move as a 'welcome U-turn', while Kemi Badenoch called on him to apologise for 'six wasted months'. 'Just like he dismissed concerns about the winter fuel payment and then had to U-turn, just like he needed the Supreme Court to tell him what a woman is, he had to be led by the nose to make the correct decision here,' she said. 'I've been repeatedly calling for a full national inquiry since January. It's about time he recognised he made a mistake and apologised for six wasted months.' Speaking to reporters travelling with him on his visit to Canada, the Prime Minister said: 'I have never said we should not look again at any issue. I have wanted to be assured that on the question of any inquiry. That's why I asked Louise Casey who I hugely respect to do an audit. 'Her position when she started the audit was that there was not a real need for a national inquiry over and above what was going on. Baroness Louise Casey has compiled a report on child sexual exploitation (James Manning/PA) 'She has looked at the material she has looked at and she has come to the view that there should be a national inquiry on the basis of what she has seen. 'I have read every single word of her report and I am going to accept her recommendation. That is the right thing to do on the basis of what she has put in her audit.' The Times newspaper reported that the findings of Baroness Casey's review will be set out in Parliament on Monday. The inquiry will be able to compel witnesses to give evidence, and it is understood that it will be national in scope, co-ordinating a series of targeted local investigations. Prof Jay's 2022 report concluded there had been institutional failings across the country and tens of thousands of victims in England and Wales. A national row over grooming gangs was ignited in January after tech billionaire Elon Musk used his X social media platform to launch a barrage of attacks on Sir Keir and safeguarding minister Jess Phillips. It followed the Government's decision to decline a request from Oldham Council for a Whitehall-led inquiry into child sexual abuse in the town. The Government later commissioned a 'rapid' audit by Lady Casey into the nature and scale of group-based child sexual abuse, which had been due to take three months but was delayed.
The Herald Scotland
an hour ago
- The Herald Scotland
Procurement rules set to be overhauled as ministers lay out infrastructure plans
The Treasury has promised hundreds of billions over the next decade for projects such as roads, railways and homes. Under proposals put forward in a Cabinet Office consultation, public bodies would have to give more weight to firms which can prove they will boost British jobs when they are bidding for contracts. Chancellor of the Exchequer Rachel Reeves delivered her spending review on Wednesday June 11 (Stefan Rousseau/PA) The change is set to apply to major projects such as transport, as well as other schemes including hospital and school building. Firms looking to work on public sector projects could also be rewarded if they can show benefits they will bring to a community, such as apprenticeships, opportunities for care leavers, or helping people into work. Pat McFadden, the Chancellor of the Duchy of Lancaster, has said that the proposals will reward firms that 'put money in working people's pockets'. 'Whether it's building roads, railways or schools, we want to open up opportunities on major infrastructure projects for firms that boost British jobs and skills,' he said. 'The new rules will deliver on our plan for change by rewarding companies that put money in working people's pockets as we invest in the country's future.' According to the Treasury, the infrastructure strategy will lay out Government plans on prioritised policy areas such as upgrading transport networks, building new homes, modernising public services such as hospitals, and assisting the transition to green energy. Ministers are pledging that at least £725 billion will be spent on infrastructure over the next 10 years. The Chancellor outlined a raft of infrastructure investment as part of last week's spending review. According to Wednesday's announcement, there will be £39 billion over the next 10 years to build affordable and social housing, and spending is due to reach £4 billion a year in 2029-30. There was also a £30 billion commitment to nuclear power, including £14.2 billion to build the Sizewell C plant in Suffolk and £2.5 billion for small modular reactors, as well as £15 billion for public transport projects in England's city regions and a four-year settlement for Transport for London worth £2.2 billion. Ms Reeves said: 'The British people voted for change – and this is how we deliver it. For too long, our infrastructure – our schools and hospitals, or our roads and bridges – have been left to crumble, holding back communities and stunting economic growth. 'This was a dereliction of duty by previous governments overseeing an era of managed decline, but it ends with this one. 'We are investing in Britain's future, brick by brick, road by road and track by track.'
South Wales Argus
an hour ago
- South Wales Argus
Canada is independent and sovereign, says Starmer ahead of visit
In an apparent challenge to the US President, the Prime Minister said the country was a 'much-valued member of the Commonwealth'. Sir Keir indicated the UK and Canada will seek to restart trade talks on his way to meet Mark Carney, the country's premier and former Bank of England governor, in the Canadian capital on Saturday. The visit will be the first by a British premier to the country in eight years and comes ahead of leaders from the world's major economies meeting for the G7 summit in Kananaskis next week. The Prime Minister will be walking a diplomatic tightrope between strengthening bilateral relations with Canada and keeping Mr Trump, with whom he is finalising details of a transatlantic trade deal, on side. The US President has repeatedly expressed a desire to make Canada the '51st state.' Asked whether he had called out Mr Trump's remarks about Canada, the Prime Minister said: 'Canada and the US are our allies. Canada is an independent, sovereign nation, and quite right, too. 'And that's the basis on which I've approached my discussions with all of our partners. I'm not going to get into the precise conversations I've had, but let me be absolutely clear: Canada is an independent, sovereign country and a much-valued member of the Commonwealth. 'And we work closely with Canada on any number of issues, whether that is defence and security – particularly the training in Ukraine, it's been something where Canada and the UK have worked very closely together.' He added: 'And one of the things I want to do is to open the door to taking out further, reducing out trade barriers with Canada. So, I'm really clear where we stand on that.' The UK and Canada have a trade relationship worth about £28 billion to the British economy and are both members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. But the two leaders have starkly different approaches to the US president. Mr Carney previously criticised the UK Government's invitation for Mr Trump to make a second state visit, telling Sky News earlier this year that Canadians were 'not impressed' by the gesture. Downing Street said Sir Keir would use his visit to Canada to argue that 'in a shifting global economy, the UK must retain its proud status as a free and open trading nation – strengthening our existing alliances while reducing barriers to trade with other countries around the world'. He is also expected to meet Mr Trump at the summit next week.
