Displaying items by tag: spending review

Rachel Reeves’ new spending review represents a pivotal moment for the Labour government, aiming to launch a narrative of 'renewal' after a challenging first year. With £600 billion allocated over four years, the review balances significant capital investment with modest growth in day-to-day departmental spending. Major announcements include £14.2 billion for nuclear power at Sizewell C, £15 billion for public transport in the North and Midlands, and a new rail link between Liverpool and Manchester. An additional £113 billion in capital spending will target the government's three pillars: health, security, and the economy. However, this largesse will be offset by tighter controls on daily budgets, with unprotected departments - particularly the Home Office and local councils - facing real-term cuts. Discontent is rising over pressure to reverse disability cuts, lift the two-child benefits cap, and increase winter fuel support. While Reeves insists the rises are funded by tough tax decisions, growing public dissatisfaction may force further fiscal changes by autumn. The Government hopes visible investment projects will reassure voters and build lasting trust. Breaking news: the UK economy shrank by 0.3% in April, a worse result than expected, which Reeves has described as ‘disappointing’. See

At his spending review on 25 November, the Chancellor of the Exchequer set out the Government’s plans for public spending. It is an important fiscal event, with decisions made over hundreds of billions of pounds of public money. It is also an important political event, as the government sets out relative priorities and allocates funding towards achieving its policy objectives. The initial reaction from the Institute for Fiscal Studies was this: ‘Rishi Sunak has been spending truly astonishing amounts of money this year and plans to continue to do so next year in response to Covid. Yet this was a spending review in which he reduced planned spending into the future, cutting over £10 billion from departmental spending plans next year and for subsequent years.’ (See also the next article.) Pray for the 1.3 million public sector workers who will see their pay frozen in 2021-2 and for the projected 2.6 million unemployed by spring. See