Robert Jenrick asks the public their thoughts on Rachel Reeves
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Rachel Reeves 'acting like a compulsive liar' says Jenrick
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Rachel Reeves will reveal her long-awaited spending review tomorrow, outlining how much cash each department will receive over the coming years after bitter negotiations with ministers. The Chancellor has vowed that her announcements will “invest in Britain’s renewal”, with new cash to boost living standards and fund major projects up and down the country.
But her failure to secure economic growth after a year in the job, and pledges not to raise income tax, national insurance or VAT, mean tough times lie ahead for a number of key departments. House of Commons library analysis suggests that unprotected departments - those whose budgets aren’t ring fenced - could have their funding cut by nearly ￡5 billion in real-terms. Last night, a Treasury press release named transport, security and health as those areas set for funding wins tomorrow.
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Rachel Reeves will deliver her first Spending Review tomorrow (Image: House of Commons)
By contrast, spending on police, councils, housing, the environment and culture will all feel the pinch over the coming years.
Wes Streeting, the Health Secretary, is set to be one of tomorrow's big winners, on course to be handed an extra ￡30 billion over the spending review period to increase day-to-day NHS funding by 2.8% in real terms each year.
John Healey, the Defence Secretary, will also receive a big boost thanks to Keir Starmer’s promise to slash foreign aid spending to fund an uplift in military spending to 2.5% of GDP.
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Ms Reeves has already confirmed a large amount of transport investment for England’s metro mayors, including in the North East, Tees Valley, Manchester, Liverpool, South Yorkshire and the East Midlands.
The Chancellor will also hope that a big announcement on science and technology research investment, and billions for nuclear power announced yesterday, will limit Labour MPs’ anger at the spending squeezes heading for other government departments.
In stark contrast, Yvette Cooper, the Home Secretary, is on course for a bruising day after being placed on ‘resignation watch’ by Downing Street and Treasury sources following a furious row with Ms Reeves about police spending.
The Home Secretary is set to be one of tomorrow's big losers (Image: Getty)
The LibDems calculate that her department is at risk of a ￡490 million real-terms shortfall.
She was the last Cabinet Minister to settle negotiations with Ms Reeves, warning that the planned Home Office budget will leave her unable to fund Labour’s manifesto pledges on policing, including establishing 13,000 more community police officers.
Deputy Prime Minister Angela Rayner also held out until the last minute, rowing about a potential funding gap for councils of over ￡8 billion by 2028-29 without urgent additional cash.
It’s also reported that the Chancellor has been considering real-terms cuts for the Affordable Homes Programme.
Bridget Phillipson’s education budget for schools is set to rise in real terms by just 0.4% over the period of the spending review, though this could come under threat if teaching unions threaten further strikes over pay.
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Mel Stride has warned voters not to believe Ms Reeves' spin (Image: House of Commons)
Sadiq Khan is also said to be “furious” over a lack of funding for London-based infrastructure projects, which will throw a planned extension of the Bakerloo line and Docklands Light Railway into doubt.
Speaking ahead of the review, Ms Reeves said: “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.”
However shadow Chancellor Mel Stride, who will face off against Ms Reeves at the Dispatch Box tomorrow afternoon, said her plan is to spend money she doesn’t have with no credible way to pay for it.
He added: “That means more borrowing, more debt, and, inevitably, more tax rises in the Autumn Budget.”
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Mr Stride warned voters: “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.
“This isn’t about global headwinds. It’s the direct result of Labour’s choices - maxing out the national credit card and hoping voters won’t notice. As a result, Britain is now spending over ￡100 billion a year on debt interest - more than we spend on schools, defence, or policing. Labour’s decisions have already added ￡80 billion to debt interest costs over the course of this Parliament.”
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Reform UK deputy leader Richard Tice said:
Commenting on the Spending Review, Richard Tice MP said: "Rachel Reeves can shuffle the deck chairs on the Titanic all she likes—but the reality is that Labour has gotten themselves into more trouble than they ever imagined."
“Spending is out of control, waste is rampant, and debt is spiralling. The job market has collapsed, and government expenditure continues to soar. I don’t believe there is any hope left for this Labour government. They are simply not fit to govern.”
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