Displaying items by tag: Rachel Reeves

Rachel Reeves has unveiled £15.6 billion in transport investment across England’s regions, marking a major shift in infrastructure funding and regional priorities. Targeting areas long considered underfunded, the funding will support tram, train, and bus developments in the Midlands, the North, and the West Country. Greater Manchester and the West Midlands will receive over £2 billion each for tram expansions, while £2.1 billion will launch the West Yorkshire Mass Transit system. There are also major sums for Liverpool, the North East, the East Midlands, Tees Valley, and South Yorkshire. This investment marks Reeves' first open move away from the stringent rules in the Treasury’s traditional Green Book rules, which have long favoured London. Though some projects were originally introduced under the Conservatives, Labour has reviewed and restructured them. While regional leaders praised the announcements, critics called for tangible results rather than mere promises.

Rachel Reeves has announced that more pensioners will qualify for winter fuel payments this year, following the backlash over Labour’s 2024 decision to cut the benefit for most retirees. While she confirmed the means-test threshold will rise, she did not specify by how much, and at Prime Minister’s Questions, Keir Starmer also failed to clarify how many of the ten million affected pensioners will regain eligibility. Labour’s original decision to means-test the payment reduced eligibility from 11.4 million to just 1.5 million, limiting it to pensioners receiving benefits like Pension Credit. The move, intended to save £1.5 billion annually, was part of an effort to address what Labour calls a £22 billion fiscal gap left by the previous government. Critics, including Kemi Badenoch, accused Labour of lacking preparation and transparency. Reeves insisted the government remains committed to easing winter costs for vulnerable seniors but acknowledged that specifics are still being finalised.

Britain and the EU are set to formalise a new strategic partnership to strengthen trade ties and present a united front against Donald Trump's global tariff agenda. A leaked draft declaration, dated 25 April, affirms a mutual commitment to ‘free and open trade’ and to maintaining global economic stability. The agreement will be signed at a UK-EU summit on 19 May, marking a key moment in post-Brexit relations. Meanwhile, the Government is engaged in separate negotiations with the USA, aiming to soften the impact of existing tariffs - currently 10% on UK goods and 20% on EU exports. US press secretary Karoline Leavitt said that talks are ‘moving in a very positive way’. Rachel Reeves met with US treasury secretary Scott Besent last week, emphasising that both UK-EU and UK-US trade relationships are vital. Despite Trump reportedly viewing the 10% UK tariff as a minimum, British officials remain optimistic about securing a mutually beneficial deal.

Rachel Reeves' Spring Statement revealed the Office for Budget Responsibility (OBR) has halved the UK's 2025 growth forecast from 2% to 1%. In response, Reeves announced deeper welfare cuts, including freezing the health element of Universal Credit for new claimants until 2030 after a 50% reduction. Cuts to Personal Independence Payments (PIP) eligibility will affect 800,000 people, with an average annual loss of £4,500. These measures are projected to save £4.8 billion by 2030, though 250,000 more people, including 50,000 children, may fall into relative poverty. Defence spending will rise to 2.5% of GDP by 2027 and 3% in the next parliament, funded by a reduction in overseas aid. Departmental budgets will grow by 1.2% above inflation, slightly less than the 1.3% previously forecast, posing significant pressures. Despite criticism from shadow chancellor Mel Stride, Reeves denied this was ‘austerity 2.0’, insisting it would lift families out of poverty.

Rachel Reeves is expected to announce billions of pounds in spending cuts - possibly including welfare - during her spring statement on 26 March. Facing economic challenges and her self-imposed fiscal rules, Reeves cannot borrow for day-to-day spending, leaving cuts as one of her only options. The Treasury is submitting proposals to the Office for Budget Responsibility (OBR) ahead of its economic forecast. Reports suggest that a four-point plan of planning reform, Whitehall cuts, regulation cuts, and welfare cuts will be central to Reeves' strategy. Her fiscal policies require maintaining a £10 billion buffer, yet sluggish growth and rising borrowing costs are forcing difficult decisions. The Government is also bracing for economic impacts from global trade challenges, including Donald Trump’s trade policies. The government faces tough choices between tax hikes or further cuts: the outcome of its decisions will significantly impact public services and financial stability in the coming years.

Rachel Reeves has unveiled major infrastructure projects, including support for a third runway at Heathrow Airport. Her speech highlighted Labour’s commitment to economic growth, despite opposition. She emphasised that growth 'will not come without a fight’. Key projects include developing a 'growth corridor' between Oxford and Cambridge, upgrading transport links, building nine new reservoirs, and redeveloping the Old Trafford football ground. However, the lack of public funding for these initiatives raises concerns about feasibility. Heathrow’s expansion is controversial, with critics arguing it will harm the environment and increase costs for airlines. London mayor Sadiq Khan and green energy entrepreneur Dale Vince oppose the plan, and the Conservatives and Liberal Democrats argue that the government’s approach is ineffective. Despite these challenges, Labour insists that investing in infrastructure is crucial for long-term prosperity and ensuring the UK is not left behind in global development. See

A rift within the Labour Party has surfaced over reported plans by Rachel Reeves to approve a third runway at Heathrow and expand operations at Gatwick and Luton airports. While she emphasises economic growth as the Government’s priority, several high-profile Labour figures, including Greater Manchester mayor Andy Burnham and London mayor Sadiq Khan, have voiced strong opposition. Burnham argues that prioritising airport expansion in the South could hinder infrastructure investment in northern England and concentrate growth in London. Khan cites concerns about worsening air quality, increased noise, and the impact on London’s net-zero emissions target by 2030. Key Labour figures, including  Keir Starmer and Ed Miliband, spoke against Heathrow’s expansion while they were in opposition. Reeves has countered criticism by stating that Britain’s reluctance to approve major projects has stalled economic growth. The debate highlights tensions between economic ambitions and environmental sustainability within Labour’s leadership.

The UK’s largest tax increase since 1993 was announced as Rachel Reeves introduced a budget aimed at revitalising healthcare, education, and infrastructure. Taxes will rise by £40 billion, with employer national insurance contributions, capital gains tax, and VAT on private school fees among the primary targets. These funds, coupled with higher borrowing, aim to close a financial gap left by previous administrations, supporting the NHS, affordable housing, and transport projects. Reeves acknowledged the 'difficult decisions' required, defending these increases as essential to 'rebuild Britain' without directly impacting individual income tax, VAT, or national insurance. Critics argue, however, that these tax hikes may still burden working people indirectly. In response to Tory criticisms, Reeves insisted that Labour’s approach will prevent austerity and 'put more pounds in people’s pockets' while providing relief measures for small businesses and the retail, hospitality, and leisure sectors.

The Guardian reports that the Treasury has asked ministers to prepare for cuts of up to 10% in infrastructure spending, targeting projects such as hospital upgrades, road construction, and defence initiatives. Despite Chancellor Rachel Reeves' recent commitment to increased investment to stimulate growth, the government still faces a £22 billion financial shortfall. Economists warn that cutting capital investments could harm the economy and exacerbate the country's deteriorating public infrastructure. Reeves, set to deliver her first budget on 30 October, is expected to outline tax increases to fund public services, while also addressing departmental spending limits established before inflation and rising asylum costs worsened the deficit. However, some ministers argue that short-term cuts will hinder long-term economic progress.

Millions of pensioners will lose winter fuel payments after the Government won a Commons vote to end the universal benefit. Chancellor Rachel Reeves introduced the measure as part of an effort to address a £22 billion deficit in public finances. The payment , which had been given to all pensioners, will now be restricted to those receiving pension credit. The move, which will save around £1.5 billion annually, has drawn criticism for its sudden implementation without public consultation. 53 Labour MPs abstained from voting, and some people have vowed never to vote Labour again. One Labour MP, Jon Trickett, broke ranks and voted against the measure, citing concerns about pensioner poverty and criticising the Government for targeting the vulnerable rather than the wealthy. The winter fuel payment, introduced in 1997, was designed to help pensioners with heating costs, but its removal will affect ten million people, leaving many facing increased hardship this winter.