Chancellor Rachel Reeves will set out plans in the spending review on Wednesday to invest billions of pounds across Britain, as she admits “too many people” are “yet to feel” the benefits of the government’s work so far.
In a statement in the House of Commons, the chancellor will vow to spend vast sums of money across the country to “ensure that renewal is felt in people’s everyday lives, their jobs, their communities”.
As well as confirming the budgets for each government department for the next three years, the Treasury says Ms Reeves will announce plans to invest billions in security, health, and the economy more broadly.
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The chancellor will set out “reforms that will guarantee towns and cities outside London and the South East can benefit from new investment”, the department said.
Chancellor Rachel Reeves will set out the government’s spending plans for the next three years. Pic: Reuters
Ms Reeves is expected to say: “This government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.
“This government’s task – my task – and the purpose of this spending review – is to change that. To ensure that renewal is felt in people’s everyday lives, their jobs, their communities. So that people can see a doctor when they need one. Know that they are secure at work. And feel safe on their local high street.
“The priorities in this spending review are the priorities of working people. To invest in our country’s security, health and economy so working people all over our country are better off.”
Watch live coverage of the spending review on Sky News from 12pm
Ms Reeves will also formally confirm “the biggest ever local transport infrastructure investment in England’s city regions”, worth £15.6bn, as well as £86bn to “boost science and technology”, including by building the Sizewell C nuclear power station.
She will also announce the extension of the £3 cap on bus fares, Sky News understands. The cap – which Labour lifted from £2 – was due to expire at the end of this year.
And £39bn for a new Affordable Homes Programme over the next 10 years is also expected to be announced, as the government seeks to ramp up housebuilding to hit its manifesto pledge of building 1.5 million new homes by the end of this parliament.
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What to expect from the spending review
The chancellor will argue: “The choices in this spending review are possible only because of the stability I have introduced and the choices I took in the autumn.”
One of those choices included cutting the winter fuel allowance for almost all pensioners – a decision the government has now U-turned on, at a cost of £1.25bn. However, she is not expected to explain where that money will come from until the budget this autumn.
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Ms Reeves will tell MPs: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.
“These are my choices. These are this government’s choices. These are the British people’s choices.”
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‘You are everyone’s worst enemy’
But shadow chancellor Sir Mel Stride said this will be “the ‘spend today, tax tomorrow’ spending review”, arguing that the government is “spending money it doesn’t have, with no credible plan to pay for it”.
He said in a statement: “Rachel Reeves talks about ‘hard choices’ – but her real choice has been to take the easy road. Spend more, borrow more, and cross her fingers. This spending review won’t be a plan for the future – it will be a dangerous gamble with Britain’s economic stability.”
He went on: “Today, we’ll hear slogans, spin and self-congratulation – but not the truth. Don’t be fooled. Behind the spin lies a dangerous economic gamble that risks the country’s financial future.”
Watch live coverage of the spending review on Sky News from 12pm
