Reeves to announce £15bn for transport outside London ahead of spending review
The £15.6 billion package for mayoral authorities is expected to include funding to extend the metros in Tyne and Wear, Greater Manchester and the West Midlands, along with a renewed tram network in South Yorkshire and a new mass transit systems in West Yorkshire.
Announcing the investment in a speech in Manchester on Wednesday, the Chancellor will argue that Britain 'cannot rely on a handful of places forging ahead of the rest of the country' and champion a 'new economic model – driven by investment in all parts of the country'.
She is also expected to confirm that next week's spending review will include changes to the rules in the Treasury's Green Book that determine whether projects receive funding.
Green Book rules have been criticised in some quarters for favouring investment in London and the South East, with Labour MP Jeevun Sandher, a member of the Commons Treasury Committee, saying in April it had a 'hardwired London bias'.
Ms Reeves is expected to argue that changing the rules will ensure the Government 'gives every region a fair hearing when it comes to investments'.
But it will also mean more money for areas of the North and Midlands, including the so-called 'Red Wall', where Labour MPs face an electoral challenge from Reform UK.
The investment announced on Wednesday includes £2.4 billion for the West Midlands to fund an extension of the region's metro from Birmingham city centre to the new sports quarter, and £2.1 billion to start building West Yorkshire Mass Transit by 2028.
Greater Manchester will receive £2.5 billion for projects including new tram stops in Bury, Manchester and Oldham and an extension of the tram network to Stockport.
A £1.5 billion investment in South Yorkshire will include £530 million to renew the region's trams, while the East Midlands will receive £2 billion to design a new mass transit system between Derby and Nottingham.
In the south, the West of England will receive £800 million, including £200 million to develop mass transit links between Bristol, Bath, South Gloucestershire and north Somerset.
Transport Secretary Heidi Alexander said the announcement 'marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life'.
Some projects being backed on Wednesday, such as the development of a mass transit network in West Yorkshire, formed part of Rishi Sunak's 'Network North' plan intended to compensate for the decision to scrap the HS2 line north of Birmingham.
After coming to power last July, Labour launched a review of those projects, arguing they had not been fully funded.
Wednesday's announcement is the first from the spending review due on June 11 that will set out the Government's day-to-day departmental budgets for the next three years and investment budgets for the next four.
The review is expected to be a difficult one for the Government, with the Institute for Fiscal Studies saying the Chancellor faces 'unavoidably tough decisions' as the demands of NHS and defence spending raise the prospect of cuts in other departments.
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The Herald Scotland
an hour ago
- The Herald Scotland
Immigration warning over 'less than welcoming' statements
The tone of Sir Keir's remarks on May 12 was, as observed by Mr Sheerin and many others, surely something of a surprise. And it was unexpected even with an awareness - having covered this key issue closely over months and years - of Labour's developing and lamentable stance on immigration. The Prime Minister declared: 'Nations depend on rules – fair rules. Sometimes they're written down, often they're not, but either way, they give shape to our values. They guide us towards our rights, of course, but also our responsibilities, the obligations we owe to one another. Now, in a diverse nation like ours, and I celebrate that, these rules become even more important. Without them, we risk becoming an island of strangers, not a nation that walks forward together.' The 'island of strangers' was a striking turn of phrase. Sir Keir went on: 'So when you have an immigration system that seems almost designed to permit abuse, that encourages some businesses to bring in lower-paid workers rather than invest in our young people, or simply one that is sold by politicians to the British people on an entirely false premise, then you're not championing growth, you're not championing justice, or however else people defend the status quo. You're actually contributing to the forces that are slowly pulling our country apart.' Maybe with the benefit of hindsight the Prime Minister's remarks, even though they could have been uttered just as easily by the Tory Brexiters, should not have been quite so much of a shock as they were. After all, Labour has embraced the key elements of the Conservatives' hard Brexit: loss of free movement of people between the UK and European Economic Area nations and the ending of the frictionless trade from which the country previously benefited enormously when it was part of the single market. Nevertheless, Sir Keir's tone was surely surprisingly dismal, even given all of this. Not only did we have the reference to 'an island of strangers' but also this declaration: 'This strategy will finally take back control of our borders and close the book on a squalid chapter for our politics, our economy, and our country.' What seemed clear from Sir Keir's utterings was that populism most certainly did not end with the exit of Boris Johnson or Rishi Sunak from the prime minister post. Sir Keir's tone contrasted so starkly with Mr Sheerin's reasoned appraisal of the Prime Minister's remarks and Labour's plans on immigration. We had this from Sir Keir: 'We do have to ask why parts of our economy seem almost addicted to importing cheap labour rather than investing in the skills of people who are here and want a good job in their community. Sectors like engineering, where visas have rocketed while apprenticeships have plummeted.' You would imagine Mr Sheerin, as a veteran of the engineering sector, knows a lot more about the specifics than Sir Keir. And it is worth observing the Scottish Engineering chief executive is passionate about people in Scotland and elsewhere in the UK being trained as engineers. He would love to see the skills shortages which are posing such a challenge to member companies of Scottish Engineering and others in the sector solved. Mr Sheerin is not a politician - just someone with deep knowledge of the Scottish engineering sector. So what did the Scottish Engineering chief have to say in his quarterly report published on Friday? Read more He declared that he found the UK Government's 'latest pronouncements on immigration disappointing', highlighting the detrimental impact on companies of 'statements that feel less than welcoming'. Mr Sheerin hammered home his view that raising minimum qualification levels from Higher equivalents to degree level would 'leave out the skilled trades and crafts roles where we are already in shortest supply: welders, fabricators, electricians, pipefitters, CNC (computer numerical control) machinists to name a few'. That is surely a crucial point. And it is worth emphasising Mr Sheerin's observation that people skilled in these roles are 'already in shortest supply'. Mr Sheerin also noted: 'The shortening of the graduate visa scheme reducing the right to work from two years to 18 months after graduating will not only hit our education sector but also reduce the attractiveness of the scheme for companies who will have a shorter timeline to decide whether to invest in the process to extend the visa of the employee.' This is another good point. And the Scottish Engineering chief executive declared: 'Whilst I recognise that this [immigration] is a contentious political issue across the UK for a whole range of reasons, in engineering and manufacturing in Scotland the reality is that immigration is a vital source of skills and experience that cannot be replaced overnight. These skills levels take years to build - and we should be building them - but closing off the supply before putting in place the actions to do that is another example of an action that will challenge the stated ambition of growing our economy.' The time horizon with regard to building skills levels is important. It might not chime with that of politicians such as Sir Keir, who seems at pains to bang the drum on immigration as Nigel Farage's Reform UK makes a big noise on this front. However, it is a simple factual point that engineering skills do take years to build. Mr Sheerin declared that a frustration for him in Labour's immigration pronouncements was that 'whereas there is considerable detail on how we plan to restrict and close this supply of skills, on the laudable stated aim that we will replace the loss with trained or upskilled UK-born workers, the detail is missing on how that will be achieved'. He added: 'And there is no detail that recognises that engineering skills take between four and six years to get to a starting level of competency. It does not seem an unreasonable request for the get-well plan to carry at least the same level of detail as the take-it-away plan.' This seems like an absolutely fair summation of the problems with Labour's populist immigration proposals. If you were asked to choose whether you think it is Sir Keir or Mr Sheerin who is on the money in relation to immigration policy and its effect on engineering and the broader economy, it would surely be the easiest of questions to answer, any day of the week.
The Herald Scotland
an hour ago
- The Herald Scotland
Jim Sillars: John Swinney should resign as SNP leader
Polling suggested the SNP would win the crunch by-election but instead Labour took the seat pushing the SNP into second while Reform was placed third. The result prompted calls on Friday by SNP veteran Alex Neil for Mr Swinney's resignation as leader before the Scottish Parliament elections in 2026, when the SNP will have been in power for 19 years. Speaking to The Herald Mr Sillars echoed Mr Neil's views that Mr Swinney should quit though added he did not think a change of leadership would be sufficient to put the SNP on the front foot in time for the election next May saying better delivery on public services and a review of policy priorities was needed. "Look at yesterday's result," he said. READ MORE: SNP veteran calls for Swinney to quit after Labour shock by-election victory Sarwar: Swinney ran a 'disgraceful' campaign and is running down the clock as FM Rows with press, claims of racism and misinformation - a by-election that turned ugly "The SNP went down to 29%. If that was repeated in 2026 the SNP will have a disaster on their hands, they would get nowhere near the seats they need to get and therefore not be in government. "It is very difficult to see how they can reverse their position. They are also being judged by voters on the basis of their performance in government. "They have spent more time in Holyrood arguing about the identity of women than they have about the 85,000 children living in abject poverty. Former SNP deputy leader Jim Sillars (Image: PA) "It is not just a leadership replacement they would have to rethink their whole policy priorities. They have lost the people." He noted the difference in support for independence and for the SNP. "When you get polling showing that support for independence is around 50% but the so-called party of independence is getting 29% of the vote in a critical by-election then there is a real problem," he added. "I never thought John Swinney would make a good leader. I think he should go on the basis that he is a failure, though it doesn't mean that him going would really change things substantially." Along with Mr Neil, Mr Sillars is a longstanding critic of Mr Swinney and former First Minister Nicola Sturgeon. Both were supportive of the late former First Minister Alex Salmond when he fell out with Ms Sturgeon. Turning to the First Minister's message that the by-election was a straight contest between the SNP and Reform, Mr Sillars said: "He punted Reform instead of dealing with the real opposition which was Labour. Scottish Labour's victory rally in Hamilton on Friday (Image: Colin Mearns) "It showed a man with a lack of judgment and someone who could not read the street." Former SNP health secretary Mr Neil was the first senior party figure to call for a change of leadership following the SNP by-election defeat. In a post on X on Friday Alex Neil, who held Cabinet roles in the administrations of both Alex Salmond and Nicola Sturgeon, said it was time for a new leadership. READ MORE: Keir Starmer: John Swinney hasn't raised independence referendum with me Swinney defends claims Labour 'out of it' in by-election Not a shot that's been fired across SNP's bows, it's a cruise missile "Poor by election result for the SNP despite having the best candidate," wrote the former Cabinet minister on X. "It shows that the opinion polls appear wide of the mark. Most importantly it shows the current SNP leadership needs to be replaced urgently." Mr Sarwar and his party celebrated in the early hours of Friday morning after Labour's Davy Russell was elected as the new MSP for Hamilton, Larkhall and Stonehouse, winning the seat from the SNP. With the votes showing a swing of more than 7% from the SNP to Labour, Prime Minister Sir Keir Starmer said on Friday the result showed people have "voted for change". The by-election had been held following the death earlier this year of Scottish Government minister Christina McKelvie. When the votes were counted, Mr Russell polled 8,559, SNP candidate Katy Loudon took 7,957 votes, while Reform's Ross Lambie secured 7,088. And although Mr Russell was elected with fewer votes than Labour secured in the seat in the 2021 Scottish Parliament election, the SNP's support fell from just over 46% of all ballots then to 29.35% in the by-election. Reform UK deputy leader Richard Tice insisting they were "delighted" with coming third - despite speculation prior to the count that they could come in second or may even pull off a surprise victory. Speaking at a media event in Hamilton on Friday morning, Mr Sarwar accused the SNP leader of running a "disgraceful" campaign" and insisted the by-election could "help lead the way" to him becoming Scotland's next First Minister. Mr Swinney said the SNP was "clearly disappointed" with the result. The First Minister and party leader said Labour had "won by an absolute landslide" in Rutherglen and Hamilton West - noting the SNP "came much closer" this time round. But he added: "The people of Hamilton, Larkhall and Stonehouse have made clear that we still have work to do. "Over the next few days, we will take time to consider the result fully." The SNP was approached to seek comment on the interventions from Mr Sillars and Mr Neil. Since coming into office in Spring last year Mr Swinney has attempted to refresh the SNP's policy agenda with a renewed focus on addressing child poverty and improving public services, in particular tackling waits for NHS treatment. He has attempted to steer away from the public debate on gender politics which dominated the end of Ms Sturgeon's time in office.
Daily Record
2 hours ago
- Daily Record
Anas Sarwar should not expect to oust John Swinney yet, says polling guru
John Curtice said the battle for the South Lanarkshire seat always looked as if it would be a close affair and that's how it turned out. Anas Sarwar should not expect to oust John Swinney as first minister just yet despite Labour's success at the Hamilton, Larkhall and Stonehouse by-election, Professor John Curtice has said. The election guru said the battle for the South Lanarkshire seat always looked as if it would be a close affair and that's what happened. The Strathclyde University academic told BBC Radio 4's Today programme: 'If you take in the opinion polls, what's happened in Hamilton, and the ups and downs in Labour and SNP support since 2021, we see Labour at 31 per cent and the SNP at 31 per cent. 'So the contest always looked to be close and that's what's been proven in the end. Labour has done slightly better and the SNP slightly worse, but there is nothing in the result to suggest Labour has turned around the polls. 'But equally what's true is there are no signs in this result that the SNP are making much progress in reversing the losses from last year. 'The recent message from opinion polls are the SNP is running at just over 30 per cent, Labour is around 20 per cent, so it seems a reasonable expectation that such a result would not mean Anas Sarwar is Scotland's next first minister.' Curtice also said that the by-election was positive for Reform, even though it came third after some pundits predicted it could finish higher. Nigel Farage's party took 26.2 per cent of the vote - well above the 19 per cent it is sitting at in the national polls for Scotland. Writing in The Times, he said: 'Once again it is Reform's political prospects that now look brighter. 'As in the English local elections, so in Hamilton the party outperformed its current standing in the polls, winning as much as 26 per cent of the vote. 'Hitherto politicians in Scotland have comforted themselves with the thought that Nigel Farage could never make the political weather in a country that voted against Brexit and which seems less concerned about immigration. 'However, as in the rest of the UK, that is not a thought that is credible any more.' It is estimated around one in four Conservative voters in Scotland from last year's general election have switched to Reform, along with one in six Labour voters. Curtice said: 'Reform UK is damaging both of the principal unionist parties in Scotland. 'In this instance, it was not enough to save the SNP's bacon. But across Scotland there is still the likely prospect that the SNP will be the largest party in the next Holyrood election, but much diminished and much less powerful than the one currently occupying the debating chamber.'
