Key points announced ahead of Rachel Reeves' spending review
The review, which will set out day-to-day spending plans for the next three years and capital spending plans for the next four, is expected to see boosts for the NHS, defence and schools.
But it is also likely to involve squeezes for other departments as the Chancellor seeks to keep within the fiscal rules she has set for herself.
Her room for manoeuvre has also been further constrained by the Government's U-turn on winter fuel payments, which will see the benefit paid to pensioners receiving up to £35,000 per year at a cost of around £1.25 billion to the Treasury.
The full details will be revealed in the Commons on Wednesday, but several announcements have already been made.
They include:
– £15.6 billion for public transport projects in England's city regions;
– £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk;
– £39 billion over the next 10 years to build affordable and social housing;
– An extension of the £3 bus fare cap until March 2027;
– £445 million for upgrades to Welsh railways.
The Chancellor is also expected to announce changes to the Treasury's 'green book' rules that govern whether major projects are approved.
The Government hopes that changing the green book will make it easier to invest in areas outside London and the South East.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Powys County Times
25 minutes ago
- Powys County Times
Burnham presses Scottish Government on Alexander Dennis factory closure
Greater Manchester Mayor Andy Burnham has questioned why the Scottish Government has not done more to save jobs at Alexander Dennis. The bus manufacturer announced on Wednesday it is proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire. The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year. Following the announcement, Mr Burnham pointed to the purchase of 160 buses from the manufacturer for Greater Manchester's Bee Network, while the Scottish Government ordered 44. The order from the Scottish Government was made as part of the second phase of the green bus initiative ScotZEB. In the first phase, the Government funded the building of 137 buses, according to a press release from the bus firm at the time, meaning a total of 181 have been ordered since 2022. Mr Burnham said: 'Our iconic Bee Network buses are a bit of Scotland right here in Greater Manchester. 'We have over 160 Alexander Dennis buses criss-crossing our city-region every day – connecting our communities to opportunity. 'If Greater Manchester can invest in world-class Scottish bus manufacturing, then why can't the SNP Scottish Government? 'Meeting the ADL (Alexander Dennis) staff in Falkirk who have helped us to make the Bee Network a reality is always a pleasure and my thoughts are with them at this difficult time.' Scottish Labour leader Anas Sarwar said the closure is a result of Holyrood ministers 'once again overlooking Scottish industry', as he pointed to the award of a contract to build ferries being given to a shipyardyard in Turkey. 'Alexander Dennis buses are already serving passengers successfully across Greater Manchester, yet SNP ministers appear unwilling to give their full backing to the company for the benefit of people here,' Mr Sarwar said. 'John Swinney promised this scheme (ScotZEB) would 'open up new economic opportunities', but he has failed to turn those words into action. 'If the First Minister is serious about boosting Scotland's economy and supporting workers, he should start by investing in Scottish workers.'
Rhyl Journal
26 minutes ago
- Rhyl Journal
Labour MPs push front bench for ‘crackdown' on ‘dodgy' vape and barber shops
Melanie Onn said she 'really must press' the Government for long-term action to tackle these shops, which MPs heard had links to tax evasion and money laundering, and Joe Powell said well-known London streets such as Portobello Road and Notting Hill Gate are 'blighted'. Business and trade minister Gareth Thomas told MPs that the National Economic Crime Centre (NECC) had visited almost 400 premises during a three-week operation in March, freezing several bank accounts. Mr Powell, the MP for Kensington and Bayswater, told the Commons: 'Small businesses across my constituency on our high streets from Earls Court Road to Queensway, Notting Hill Gate and Portobello Road are fed up of being blighted by candy shops, low-grade souvenir shops, Harry Potter shops and, yes, even barber shops, with accusations of VAT and business rates evasion, and even links to money laundering and serious organised crime.' He urged Mr Thomas to say 'what steps' the Government is taking 'to crack down on these operations and create a legitimate level playing field for our small businesses'. The minister replied: 'We've been working with colleagues in the Home Office and the National Crime Agency (NCA) to take action to crackdown on illegitimate businesses that threaten to undermine the legitimate ones that are on all of our high streets. 'In March, the NECC co-ordinated a three-week crackdown against barber shops and other cash-intensive businesses where there were concerns, visiting almost 400 premises, securing freezing orders over a series of bank accounts totalling more than £1 million.' In response, Ms Onn said: 'I really do need to press him because my constituents in Great Grimsby and Cleethorpes are equally as fed up as (Mr Powell) of seeing high streets dominated by dodgy vape shops, unlicensed barbers.' She said 'some of them are legitimate' but asked: 'Is he working closely with the Home Office to try and tackle this blight because I think we probably need a national strategy, not a three-week operation?' Mr Thomas said he recognised 'a concern up and down the country' and added the NCA and Home Office 'are seeking to take action against illegitimate business'. He said a Government commitment to bolster police forces with 13,000 extra officers and special constables, backed by an uplift to forces' 'spending power' of 2.3% per year unveiled in Wednesday's spending review, 'will help'. In a viral video, Conservative shadow justice secretary Robert Jenrick claimed 'weird Turkish barber shops' were 'chipping away at society', along with fare evasion, when he caught passengers allegedly 'bumping' London Underground ticket barriers on camera. 'The state needs to reassert itself and go after lawbreakers,' he said. Sadiq Khan is driving a proud city into the ground. Lawbreaking is out of control. He's not acting. So, I did.👇 — Robert Jenrick (@RobertJenrick) May 29, 2025 Conservative MP Graham Stuart said that if a book which Labour MP for Central Ayrshire Alan Gemmell is writing were a 'political thriller about fighting for small business', then he was 'sure it features five heroes on the front bench opposite, doing everything they can to promote small business'. Ministers laughed and pointed at Tory MPs when Mr Stuart added: 'Readers will ask 'who is the villain of the piece?'' The Beverley and Holderness MP suggested the villain would be Rachel Reeves, 'the Chancellor of the Exchequer who is doing everything possible to undermine business – 276,000 people having lost work since the autumn statement'. He asked: 'When will the ministers, the heroes of this story, fight against the Chancellor who's getting so much so wrong?' Mr Thomas said: 'It's a little while since I've been called a hero by (Mr Stuart) but I'm glad that I've finally had some recognition from him in that regard. 'I don't think the Chancellor of the Exchequer is a villain at all. 'Indeed, I think the spending review that she announced yesterday will help to unlock investment in our high streets and in our small businesses up and down the country – the record investment in research and development, the record investment in infrastructure, and the additional capacity to the British Business Bank will help to unlock billions of pounds of new investment and many more job opportunities across the country.' Labour former minister Liam Byrne later called for 'a plan to cut industrial energy costs now'. The Commons Business and Trade Committee chairman said: 'As our committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now. 'When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?' Business Secretary Jonathan Reynolds replied: 'The very significant increase in industrial energy prices under the terms of the last government are a significant issue for our competitiveness, and yes, that is something we're seeking to address.'
South Wales Guardian
26 minutes ago
- South Wales Guardian
Burnham presses Scottish Government on Alexander Dennis factory closure
The bus manufacturer announced on Wednesday it is proposing to consolidate its UK operations at a single site in Scarborough, North Yorkshire. The decision puts 400 jobs at risk at its facility in Falkirk in another blow to the Forth Valley, which has already seen more than 400 jobs go at the Grangemouth refinery this year. Following the announcement, Mr Burnham pointed to the purchase of 160 buses from the manufacturer for Greater Manchester's Bee Network, while the Scottish Government ordered 44. The order from the Scottish Government was made as part of the second phase of the green bus initiative ScotZEB. In the first phase, the Government funded the building of 137 buses, according to a press release from the bus firm at the time, meaning a total of 181 have been ordered since 2022. Mr Burnham said: 'Our iconic Bee Network buses are a bit of Scotland right here in Greater Manchester. 'We have over 160 Alexander Dennis buses criss-crossing our city-region every day – connecting our communities to opportunity. 'If Greater Manchester can invest in world-class Scottish bus manufacturing, then why can't the SNP Scottish Government? 'Meeting the ADL (Alexander Dennis) staff in Falkirk who have helped us to make the Bee Network a reality is always a pleasure and my thoughts are with them at this difficult time.' Scottish Labour leader Anas Sarwar said the closure is a result of Holyrood ministers 'once again overlooking Scottish industry', as he pointed to the award of a contract to build ferries being given to a shipyardyard in Turkey. 'Alexander Dennis buses are already serving passengers successfully across Greater Manchester, yet SNP ministers appear unwilling to give their full backing to the company for the benefit of people here,' Mr Sarwar said. 'John Swinney promised this scheme (ScotZEB) would 'open up new economic opportunities', but he has failed to turn those words into action. 'If the First Minister is serious about boosting Scotland's economy and supporting workers, he should start by investing in Scottish workers.' The Scottish Government has been asked for comment.
