Reeves says spending review will be about ‘making working people better off'
The Chancellor is expected to announce funding increases for the NHS, schools and defence along with a number of infrastructure projects on Wednesday, as she shares out some £113 billion freed up by looser borrowing rules.
But other areas could face cuts as she seeks to balance manifesto commitments with more recent pledges, such as a hike in defence spending, while meeting her fiscal rules that promise to match day-to-day spending with revenues.
She has committed £16.7 billion to nuclear power projects, including £14.2 billion of investment to build the new Sizewell C nuclear plant in Suffolk.
She said the Government was 'making Labour choices' and 'making progress' in an address to the GMB Union Congress in Brighton on Tuesday.
She said: 'I know that not enough working people are yet feeling that progress, and that's what tomorrow's spending review is all about – making working people better off, investing in our security, investing in our health, investing in our economy.
'This Government is going for growth because that is the best way to create jobs, boost wages, lift people out of poverty, and sustainably fund our schools and our hospitals and all the public services we rely on.
'And we're doing things differently, because unlike the Tories, I don't think that the only good thing that a government can do is get out of the way.'
Ms Reeves is under pressure to reverse course on cuts to benefits after she confirmed a U-turn on winter fuel payments that will see them restored to pensioners with an income of less than £35,000-a-year.
She stood firm on welfare reforms on Tuesday as a union representative urged her to 'think again' on the cuts.
The Chancellor said the current system is 'not sustainable' and that reforms aimed to get those who can work back into work and help 'fulfil the ambitions of people with disabilities themselves to get back into work'.
The reforms include plans to tighten the eligibility criteria for personal independence payments, known as Pip.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
22 minutes ago
- The National
Scottish Government rules out reopening national park process
With ministers having decided not to proceed with plans to establish a national park in Galloway, Rural Affairs Secretary Mairi Gougeon said she would not be 'reopening' the process. That was despite Galloway having been selected for consideration from a shortlist of five areas. As Gougeon appeared before Holyrood's Rural Affairs Committee, she was pressed on whether one of the other areas could now be considered for national park status. READ MORE: Secondary pupils to receive free school meals in eligibility expansion Noting that the plans for Galloway had been abandoned because of a lack of public support in the area, Green MSP Mark Ruskell said in one of the other shortlisted areas, Tay Forest, a consultation had found a 'large majority support for a national park in that area'. He told the Rural Affairs Secretary: 'You have one area which does have public support, does meet the criteria, what would be the future for a national park in Tay Forest at this point?' Gougeon told him: 'We set out a process to establish or to designate a new national park in Scotland, as far as I am concerned we have completed that process and we have come to a decision not to proceed with that designation. 'So, I wouldn't want you to now think we are going to reopen that or go back to consider other bids, because we have been through that process and that has been completed. 'So, I won't be going back to review those bids or to consider proceeding on that basis.' Gougeon added that ministers are 'open to considering establishing a national park, potentially in the future' but with the next Holyrood elections taking place in May 2026 she stressed that this would be for a future government to consider. Ruskell said: 'That sounds like no more national parks for the foreseeable future, at a time when there are lots of national park proposals being developed in England and elsewhere.' Scotland currently has two national parks, with one in the Cairngorms and one in Loch Lomond and the Trossachs. The Scottish Government's commitment to creating a new one came out of the powersharing agreement between the SNP and the Scottish Greens at Holyrood – a deal which came to an end last year when then first minister Humza Yousaf ejected the smaller party from his government. Gougeon appeared before Holyrood's Rural Affairs Committee some two weeks after she confirmed that the Government would not be proceeding with the proposed national park in Galloway. She told MSPs than that a consultation had found 54% of people were opposed to a national park in the area, with 42% in favour. Among local people, 57% were against the national park bid while 40% were supportive of it, Ms Gougeon added.
Sky News
38 minutes ago
- Sky News
Spending review Q&A: Send in your questions for our experts
Rachel Reeves is setting out the budgets for each government department over the coming years today. Got a question on her plans and what they mean for you? Submit them below for a live Q&A with Sky News correspondents at 4pm.
STV News
41 minutes ago
- STV News
Keir Starmer to face PMQs ahead of major spending review
Keir Starmer is set to face Prime Minister's Questions ahead of a major spending review on Wednesday. The Prime Minister will be questioned by opposition leaders immediately before chancellor Rachel Reeves unveils the UK Labour Government's £113bn spending plans over the next three years. Reeves is expected to announce significant increases in funding for the NHS, defence and education. Funding is also expected to be confirmed for the Acorn Project, a major carbon capture and storage scheme in Aberdeenshire. However, these increases could come at the expense of other public services or government departments. For example, the policing budget is expected to rise above inflation, but this could come with cuts elsewhere in the Home Office. Ahead of the announcement, the Institute for Fiscal Studies warned that any NHS funding rise above 2.5% could mean real-terms cuts for other departments or tax increases in the autumn budget. PMQs also comes just days after Starmer's Labour Government confirmed it was planning a partial U-turn on the highly unpopular decision to cut winter fuel payments for nine million pensioners last year. On Monday, Reeves assured the country that more pensioners will receive winter fuel payments from this winter as part of the Labour Government's £1.25bn U-turn. All pensioners in England and Wales with an income of or below £35,000 per year will benefit from the revised inter fuel payment – equivalent to around nine million people. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
