Rachel Reeves set to revive Tory plans to invest in the Red Wall as Labour tries to head off Reform threat

Daily Mail​

2 days ago

is poised to revive Boris Johnson 's plans to plough billions into the Red Wall as Labour tries to head off the threat from Reform UK.
The Chancellor is said to have ordered a review of the framework to enable investment in the North and Midlands at next month's spending review.
Labour will hope the plans to level-up the country by funnelling billions into infrastructure and green energy projects could boost the party's fortunes.
It is focusing on the threat from Nigel Farage, whose party made huge gains in the local elections and continues to top opinion polls.
To counter Reform's popular appeal, Ms Reeves will tear up Treasury spending rules and announce a multi-billion-pound investment package, The Times reported. MPs expect capital investment in road, rail and green energy projects worth up to £100billion after she changed the fiscal rules in her Budget last year.
Channelling spending into these areas will allow Sir Keir Starmer to argue that Labour is delivering on its election pledge to improve living standards in every part of the country.
Ms Reeves is said to have ordered a review of the Treasury's Green Book, which sets out the framework in which projects are granted funding.
It has historically favoured investment in London and the South East as those areas are judged to give the biggest returns in terms of growth to the economy.
But the review will reportedly conclude that ministers should give more priority to areas that are deemed to be performing poorly. It is likely to be published on the same day as the spending review next month, followed by a ten-year infrastructure plan.
The last review of the Green Book took place in November 2020 under Boris Johnson who pledged to level-up the country by upping spending in the Red Wall, where the Tories took seats from Labour.
The Prime Minister has positioned Reform as his main opponents and held an emergency press conference following Mr Farage's intervention earlier in the week.
He accused the Reform leader of planning an 'irresponsible splurge' of tax cuts and spending increases.
A Government source said Ms Reeves had been clear that she wanted to review the Green Book to provide 'objective, transparent advice on public investment across the country, including outside London and the southeast'.
This would mean that 'investment in all regions' was given a 'fair hearing by the Treasury'.
But Kevin Hollinrake, Tory local government spokesman, said Sir Keir had 'problems wherever he looks'.
He added: 'Working-class voters have completely lost faith in Keir Starmer and Rachel Reeves and others, not least because of the disgraceful stripping away of the winter fuel allowance. It looks very bad for the Prime Minister right now.'
The International Monetary Fund warned this week that Ms Reeves would have to raise taxes or cut spending to pay for her U-turn on the winter fuel payments. Ministers could also dilute disability benefit cuts as backbench opposition to welfare reform grows.