Chancellor: ‘I will take the fair choices to secure our future’

RACHEL REEVES PREPARES TO BREAK TAX PROMISE

TODAY (Tuesday 4 November), the Chancellor, Rachel Reeves, will ‘vow to take the fair choices to deliver strong foundations for our economy and secure our country’s future’.

In a speech delivered in Downing Street this morning, the Chancellor will address the country as she lays out the economic choices she will take at the Budget later this month to cut hospital waiting lists, cut the national debt and cut the cost of living.

The Chancellor is expected to say: “Later this month, I will deliver my second Budget as Chancellor.

“At that Budget, I will make the choices necessary to deliver strong foundations for our economy – for this year, and years to come.

“It will be a budget led by this government’s values, of fairness and opportunity and focused squarely on the priorities of the British people:

“Protecting our NHS, reducing our national debt and improving the cost of living.

“You will all have heard a lot of speculation about the choices I will make.

“I understand that – these are important choices that will shape our economy for years to come.

“But it is important that people understand the circumstances we are facing, the principles guiding my choices – and why I believe they will be the right choices for the country.“

Chancellor’s ‘Scene Setter’ speech ahead of Budget 2025

Later this month, I will deliver my second Budget as Chancellor of the Exchequer.

At that Budget, I will make the choices necessary to deliver strong foundations for our economy.

My Budget led by this government’s values of fairness and opportunity…

…and focused entirely on the priorities of the British people:

Protecting our NHS,

reducing our national debt,

and improving the cost of living.

There is a lot of speculation about the choices that I will make.

I understand that – these are the important choices that will shape the future of our country for years to come

I want people to understand the circumstances we are facing,

the principles guiding my choices,

and why I believe they will be the right choices for our country.

We are a country with considerable economic strengths:

An open, trading economy,

A global hub for cutting-edge industries from AI to Biotech,

With world-leading universities and scientific institutions,

and a talented and a committed workforce.

[political redaction]

At the Budget last year, I fixed the foundations:

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I put the public finances back on a firm footing,

Provided an urgent cash injection into our faltering public services,

And began rebuilding our economy.

But since that Budget,

The world has thrown even more challenges our way.

The continual threat of tariffs has dragged on global confidence –

Deterring business investment, and dampening growth.

Inflation has been too slow to come down as supply chains continue to be volatile –

Meaning that the cost of everyday essentials remains too high.

And the cost of government borrowing has increased around the world –

A shift that Britain – [political redaction] – has been particularly exposed to.

And in an uncertain world, we also face pressure to increase our defence spending – and it is right that we do that…

…protecting ourselves from hostile actors and supporting our allies.

And there are other pressures on the public finances.

The Prime Minister, the Secretary of Work and Pensions and this whole government are committed to reforming our welfare state…

…so that it is not a system that counts the cost of failure…

…but one that invests in success and protects those who need it most.

There is nothing progressive about refusing to reform a system that is leaving one in eight young people out of education or employment.

So, we have begun the job of creating a system that protects people who cannot work and empowers those who can.

And there are longer-term challenges too:

That feeling, shared by millions of people across the country that the economy isn’t working as it should.

Alongside the Budget this month,

The Office for Budget Responsibility – the UK’s public finance watchdog – will set out the conclusions of their review of the supply side of the UK economy.

I will not pre-empt those conclusions…

…but it is already clear that the productivity performance [political redaction] is weaker than previously thought.

A less productive economy is one that produces less output per hour worked.

That has consequences for working people – for their jobs and for their wages…

…and it has consequences for the public finances too, in lower tax receipts.

It’s not a question of how hard people work –

Poor productivity means we are putting in more and getting less out.

It means too many businesses and workers don’t have the tools they need:

Trains that run on time,

Broadband that’s fast and reliable,

Access to new technologies,

Or proper training so people have the right skills for the job.

For a long time, commentators have talked about Britain’s ‘productivity puzzle’.

But it’s not a puzzle.

The causes of our economic underperformance are well understood.

The chronic stop-go cycle of public investment has left us with roads full of potholes, high energy prices and unstable conditions for vital business investment in skills and technology…

…and long-term failure to invest in our regions has built growth on a narrow base – with some parts of the country forging ahead while others fall behind.

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All this meant that when the pandemic arrived our country was under-prepared…

…our public services weakened and our economy fragile.

And we finished the pandemic with higher death rates and higher debt than our peers.

This isn’t about relitigating old choices.

It’s about being honest with people about the consequences those choices have had.

It is my job to deal with the world as we find it…

…not the world as I would wish it to be.

Not to commentate or speculate,

But to act.

In my Mais lecture last year, I set out our plan for solving our productivity problem through a programme of stability, investment and reform,

And when I became Chancellor, I began to put that plan into action.

Stabilising our public finances –

Making the tax and spending decisions to get debt down and to fund our public services sustainably.

Changing the fiscal rules to increase public investment by £120bn over the course of this Parliament…

…and crowding in private investment too…

For road and for rail, for housing and nuclear power.

And reforming our economy:

Ripping up the planning rules so we can build housing and infrastructure across the country…

Bringing the brightest and best to our shores with a new visa regime…

And signing trade deals with the EU, the US and India to help our businesses export around the world.

We have begun to see the results of those plans…

…in falling interest rates and falling NHS waiting lists…

…in rising wages and rising investment.

But I know that real progress takes time.

Our growth was the fastest in the G7 in the first half of this year – but I don’t expect anyone to be satisfied with growth of 1%.

I’m not – and I know there is more to do.

The first part of our planning reforms will add an additional £6.8bn to the size of our economy in the next five years,

But the next part – our planning bill – must complete its passage through Parliament before it can make a difference.

Interest rates, which rose from 0.1% to 5.25% in the last Parliament, have now been cut five times…

…but at 4% they are still a constraint on business borrowing and a burden on family finances.

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…and the choices I make in the Budget this month will be focused on getting inflation falling…

…and creating the conditions for interest rate cuts to support economic growth and improve the cost of living.

I understand the urge for easy answers.

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The UK’s national debt now stands at £2.9trillion:

Equivalent to 95% of GDP.

[political redaction] our borrowing costs were in the middle of the pack compared to other advanced economies…

…but now, we have the highest borrowing costs of any G7 country.

Today, 1 in every £10 of taxpayer’s money is spent on debt interest.

Not on paying that debt down…

…but just paying the interest to our creditors.

At the Budget last year, I changed the fiscal rules to strike a careful balance:

To invest more in capital alongside a credible plan to grow our economy and bring debt down within this Parliament.

That was the right decision to break the cycle of low productivity and low growth.

But that additional investment can only be delivered because markets know that my commitment to the fiscal rules is ironclad.

Some people say we should just sidestep those rules…

…that we can borrow more without consequences by simply reclassifying areas like defence or education.

But no accounting trick can change the basic fact that government debt is sold on financial markets.

There are limits on the price that banks, hedge funds and pension funds are willing to pay for our debt…

…and we are competing constantly with other countries also selling debt .

The more we try and sell, the more it will cost us.

It is important that everyone – the public and politicians – understands that reality.

The less we spend on debt interest, the more we can spend on the priorities of working people…

…our NHS, our schools, our national security…

…the public services essential to a decent society and a strong economy.

At the Budget last year, I provided our public services with a vital cash injection…

…and I’m proud of that choice:

Proud that it [political redaction] that is providing record investment in our NHS getting waiting lists down by over 200,000 since the election,

Proud that it [political redaction] that is investing in our children through the rollout of free breakfast clubs and free school meals,

And proud that it [political redaction] that is funding our armed forces and remains resolute in our NATO commitments.

The alternative is to row back on those investments:

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Stifling our economic growth,

And weakening Britain’s foundations in an unstable world.

I will not repeat those mistakes.

But if we want strong public services in the decades to come, then we must recognise that productivity and efficiency are not only a challenge for business, but they are a challenge for our public sector too.

At the Spending Review I announced £14bn of efficiencies per year to be delivered by 2029:

Cutting government spend on consultancies,

Getting rid of bureaucratic quangos and regulators,

And driving efficiency through AI and digital technologies.

But I know that there is more to do,

In the Budget and beyond, I will continue to drive for more productive and more efficient public services, right across government…

…making savings and rooting out waste wherever I find it.

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When I was appointed Chancellor, people put their faith in me to take our country forward…

…not to be swayed by political convenience…

…not to always do what is popular, but to do what is right.

At the Budget, I will continue to deliver on the priorities of the British people:

Cutting NHS waiting lists, cutting the national debt and cutting the cost of living.

And in the context of the long-term challenges on our productivity and heightened global uncertainty…

…any Chancellor of any party would be standing here today, facing the choices that I face.

The difference is in the priorities – and the values – that will guide those choices:

Mine will be a Budget for growth with fairness at its heart…

…and a Budget that supports businesses – to create jobs and to innovate.

As I take my decisions on both tax and spend…

…I will do what is necessary to protect families from high inflation and interest rates…

…to protect our public services from a return to austerity…

…and to ensure that the economy that we hand down to future generations is secure, with debt under control.

If we are to build the future of Britain together, we will all have to contribute to that effort…

…each of us must do our bit for the security of our country and the brightness of its future.

There is a reward for getting these decisions right,

To build more resilient public finances – with the headroom to withstand global turbulence…

…giving business the confidence to invest and leaving government freer to act when the situation calls for it,

To continue to invest in our infrastructure and our industry to build a stronger economy,

And to get the cost of borrowing down – spending less on debt interest, and more on schools and our health service.

The Office for Budget Responsibility will make their forecasts at the end of this month…

…but let’s be clear about what forecasts are:

They are not visions of the future…

…they are a look in the rear-view mirror.

The OBR rightly make their predictions based on the data that has gone before…

…but I do not believe that our past has to determine our future…

…or that a stuttering economy, poor productivity and falling living standards is somehow Britain’s destiny.

A brighter future is within our grasp.

We were elected to break with the cycle of decline…

…and this government is determined to see that through.

So we will go further and faster, on planning, on the industrial strategy, on reforming to regulation…

…all to deliver growth throughout our economy, in all parts of our country.

We will bear down on waiting lists, on the cost of living, and on the national debt which compound these challenges…

…and when that requires hard choices, we will act – guided by the interests of working people.

We were elected on a commitment to put country before party; the national interest before political calculation…

…and, whatever challenges come our way – whatever challenges come my way – we will not be swayed from that.

At the Budget this year, I will continue to build the strong foundations to secure Britain’s future.

For a fairer Britain

A more prosperous Britain

A Britain with an economy that works for everyone.

Thank you very much.

Chancellor announces date for Budget

Budget to address economy that’s “not working well enough for working people”

The Chancellor has confirmed that the date of the Budget will be Wednesday 26 November.

In a video message posted yesterday, the Chancellor of the Exchequer, Rachel Reeves said: “Britain’s economy isn’t broken. But I know it’s not working well enough for working people.

“Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change. We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade.

“Fixing the foundations has been my mission this past year.

“We raised the minimum wage for three million people.

“Cut NHS waiting lists.

“Started tearing up planning rules to build 1.5 million new homes.

“Promised billions more for the country’s infrastructure.

“Secured trade deals with the US, India, and the EU.

“And changed Treasury rules so investment reaches every part of the country.

“But I’m not satisfied. There’s more to do.

“Cost of living pressures are still real. And we must bring inflation and borrowing costs down by keeping a tight grip on day to day spending through our non-negotiable fiscal rules.

“It’s only by doing this can we afford to do the things we want to do. If renewal is our mission and growth is our challenge. Investment and reform are our tools.

“The tools to building an economy that works for you – and rewards you. More pounds in your pocket. An NHS there when you need it. Opportunity for all.

“Those are my priorities. The priorities of the British people. And it is what I am determined to deliver.“

Finance Secretary @shonarobison has responded to the UK Government announcing the UK Budget will take place on 26 November.

She said the date presents challenges for @scotgov to bring forward its Budget before the end of the year.

Scotland gets £66 million transport boost as part of record Spending Review settlement

The Chancellor visited Paisley yesterday to announce £66 million of investment in Scottish transport

Chancellor Rachel Reeves announces millions for West of Scotland transport links and extra funding to explore upgrades to the A75.
Investment follows the Industrial Strategy which boosted Advanced Manufacturing clusters and the Spending Review which delivered a record settlement for Scottish public services.
Funding is part of Government’s plan to invest in the economy right across the UK.

The investment will help workers access jobs in high growth sectors supercharged by the government’s modern Industrial Strategy and Spending Review.

The UK Government is boosting investment across Scotland through two investment zones and multiple industrial sites from the North East of Scotland Investment Zone to the Prestwick Aerospace Cluster.

This £66 million will work alongside these investments to fund three Scottish transport schemes and create direct links between towns and economic hubs in the West of Scotland.

Renfrewshire Council will get £38.7 million to link Paisley town centre with Advanced Manufacturing Innovation District Scotland (AMIDS) and Glasgow Airport. New walking, cycling, bus and car links will be built so local people can benefit from the growth of high value manufacturing in Renfrewshire.

Another £23.7 million will be given to North Ayrshire Council to upgrade the B714. This upgrade will see a much faster route between the Three Towns of Ardrossan, Saltcoats and Stevenston to Glasgow, and cut traffic in Kilwinning. The Chancellor prioritised finding this cash during last month’s Spending Review, which also saw billions invested in Scotland’s growth sectors.

Chancellor of the Exchequer, Rachel Reeves said: “We’re pledging billions to back Scottish jobs, industry and renewal – that’s why we’re investing in the major transport projects, including exploring upgrades to the A75, that local communities have been calling for.

“Whilst previous governments oversaw over a decade of decline of our transport infrastructure, we’re investing in Britain’s renewal. This £66 million investment is exactly what our Plan for Change is about, investing in what matters to you in the places that you live.”

Meanwhile, the Scottish Government will be given an extra £3.45 million to suggest upgrades to the A75 in Dumfries and Galloway. The key road, which links the Cairnryan port serving Northern Ireland with the rest of the UK, is vital to UK connectivity and growing the economy.

This new money comes on top of the up-to-£5 million announced at the Chancellor’s Autumn Budget 2024.

As part of a wider investment strategy in Scotland the Spending Review saw around £200 million committed to the Acorn Carbon Capture, Usage and Storage project, subject to business cases, and £8.3 billion confirmed for Great British Energy, strengthening Scotland’s position as the home of the UK’s clean energy revolution. 

A multi-decade, multi-billion project to secure jobs at HM Naval Base Clyde was also kickstarted with an initial £250 million investment.

Whilst in Scotland the Chancellor will also visit the Edinburgh Supercomputer, which will receive up to £750 million in UK Government funding, later on Friday. The funding, announced during the Chancellor’s Spending Review will ensure that Scotland becomes home to the UK’s most powerful Supercomputer, supporting Scottish research and development, and industry.

The Spending Review delivered a record settlement for Scottish public services, with the Scottish Government’s largest settlement, in real terms, since devolution in 1998. Scottish Government’s settlement is growing in real terms between 2024-25 and 2028-29. This translates into an average of £50.9 billion per year between 2026-27 and 2028-29.

Scotland Secretary, Ian Murray, said: “This £66 million investment in Scotland’s roads demonstrates the UK Government’s commitment to improving infrastructure and driving economic growth in all parts of the UK as part of our Plan for Change.

“This investment will make a real difference to people’s daily lives and to the local economies of the South of Scotland, Ayrshire and Renfrewshire.

“New road links will connect Paisley town centre with Glasgow Airport and the new advanced manufacturing innovation district, to boost high value manufacturing in Renfrewshire.

“The upgrade to the B714 will speed up journeys between Glasgow and the three towns of Ardrossan, Saltcoats and Stevenston, as well as cutting traffic in Kilwinning. And the A75 is strategically important just not within but beyond Scotland. Its upgrading is long overdue. I am pleased that the UK Government has stepped up to fund the delivery of the A75 feasibility study in full.

“This investment is yet another example of how the UK Government is building the foundations for a stronger, more prosperous future that benefits communities right across Scotland.

As strategic roads in Scotland are the Scottish Government’s responsibility, any future upgrades to the A75 will be funded from the Scottish Government’s block grant.
The Ayrshire and Renfrewshire projects are part of a £378m UK-wide Levelling Up Fund cash boost, upgrading transport links across Britain, which were also announced yesterday.
Building work on the LUF projects will be able to start as final business cases are given the green light by the Department for Transport.

Chancellor to cut financial red tape to boost home ownership

Red tape swept away in biggest financial regulation reforms in a decade to boost homeownership and put more money into people’s pockets through the Government’s Plan for Change.
Nationwide set to widen access to its ‘Helping Hand’ mortgage from Wednesday, supporting 10,000 extra first-time buyers thanks to Chancellor’s Leeds Reforms.
Reeves: Benefits of a thriving finance sector will be felt all over Britain

The Chancellor is expected to announce the biggest set of reforms to financial regulation in a decade at a summit of top finance executives in Leeds tonight as part of the Government’s mission to kick start economic growth and support more first-time buyers.

Red tape holding back the competitiveness of the UK financial sector will be swept away under the Leeds Reforms, addressing long-standing industry complaints.

The changes will see Britain become the top destination for finance firms over the next decade, attracting inward investment from across the globe to create good, skilled jobs around the country.

Prospective homeowners will be given a leg up onto the housing ladder under the plans, with regulators acting on the Chancellor’s push to regulate for growth.

More mortgages will be available at over 4.5 times a buyer’s income following Bank of England recommendations that some banks and building societies offer more high loan-to-income mortgages – creating up to 36,000 additional mortgages for first-time buyers over the first year.

This change means that Nationwide will be able to make its popular ‘Helping Hand’ mortgage available to people with lower incomes. From Wednesday, eligible first-time buyers can apply for the mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. This will support an additional 10,000 first-time buyers each year.

This comes alongside the creation of a permanent mortgage guarantee scheme, delivering on a Manifesto commitment and ensuring high loan-to-value mortgages continue to be available in times of uncertainty, as well as a review of Financial Conduct Authority lending rules that could allow a prospective buyers’ record of paying rent on time to show they can afford mortgage repayments.

The reforms will be unveiled in Leeds ahead of the Chancellor’s Mansion House speech on Tuesday evening.

Speaking in the City of London, Chancellor of the Exchequer Rachel Reeves is expected to say: “This is the foundation of an economy, and a country, that is more active and more confident.

“Where people and businesses look to the future and talk about hope about opportunity.

“Assured of their own capability, and of the ability of our country to boldly face the challenges that lie ahead.

“And certain of the prize if they succeed.

“Of higher wages and higher living standards.

“The renewal of Britain in every home and every high street.

“To put it simply: a Britain that is better off.

She will add on homeownership:

“I welcome the recent changes the Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA and FCA are implementing immediately.

“With an instant impact for consumers, such as Nationwide offering its ‘Helping Hand’ mortgage to more first time-buyers – supporting an additional 10,000 each year.

She will conclude:

“Today, I have placed financial services at the heart of the government’s growth mission.

“Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving. …

“And I have been clear on the benefits that that will drive.

“With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.”

£1bn for renewal of broken bridges, ruined roads and tired tunnels

Chancellor spends £1 billion to enhance and repair run down transport infrastructure and futureproof England’s road network

Package also includes further £590 million to take forward the long-awaited Lower Thames Crossing, and follows record £15.6bn investment in city region transport announced ahead of the Spending Review.

Funding will ensure vital upgrades are made to tired bridges, flyovers and tunnels across Britain, supporting highly skilled job opportunities, delivering on the Plan for Change.

Drivers across the UK will benefit from major investments to improve vital road structures, alongside committing cash to finally deliver a new Thames Crossing, working with the private sector.

Across Great Britain, approximately 3,000 bridges are currently unable to support the heaviest vehicles, restricting access for agricultural and freight transport in regions, and slowing down journeys.

And nationally, the number of bridge collapses has also risen – a stark reminder of the need for urgent action to turn the tide on the decade of neglect.

The Structures Fund will inject cash into repairing run down bridges, decaying flyovers and worn out tunnels across Britain, and ensure other transport infrastructure is both more resilient to extreme weather events and to the demands of modern transport – making everyday journeys safer, smoother and more dependable.

The Government is also pledging a further £590 million to take forward the Lower Thames Crossing, the most significant road building project in a generation and a national priority- ending the painfully slow approach seen before.

The new crossing will cut frustrating congestion at Dartford, better linking up motorists and businesses in the Midlands and North with key ports in the South East, and spreading growth throughout the regions as outlined in the Plan for Change.

The Government will look to bring in private finance and expertise to support this major project.

These investments come as part of the new 10 Year Infrastructure Strategy, which will be published later this week, and sets out clear, achievable and robust vision for projects over the next decade of renewal.

This also comes swiftly after a record £15.6bn was announced at the Spending Review to enable local leaders to build long awaited projects like the Tyne and Wear Metro extension and the West Yorkshire Metro, and more investment to fund the TransPennine Route Upgrade and deliver East-West Rail.

The Government is also delivering direct funding to support growth across the UK – with funding for five new rail stations in South Wales, and financial backing for carbon capture storage in Aberdeenshire.

Chancellor of the Exchequer, Rachel Reeves, said: “When it comes to investing in Britain’s renewal, we’re going all in by going up against the painful disruption of closed bridges, crossings and flyovers, and ensure they’re fit to serve working people for decades to come.

“Today’s investment also goes even further and faster to spread growth by providing critical funding to take forward the Lower Thames Crossing – not just boosting connectivity in the South East, but ensuring a smoother, less congested passage of vital goods from Europe to our regions.

“This is a turning point for our national infrastructure, and we’re backing it with funding to support thousands of jobs and connect communities, delivering on our Plan for Change.”

Transport Secretary, Heidi Alexander, said: “We’re finally getting on with the Lower Thames Crossing — a crucial project to drive economic growth, that has been stuck in planning limbo for far too long.

“This project is essential for improving the resilience of a key freight route and is critical to our long term trade with Europe. It will speed up the movement of goods from South East England to the Midlands and the North, crucial to thousands of jobs and businesses.

“Our structures fund will make long-overdue investments to repair ageing structures across the country, speeding up journeys, restoring pride and delivering our Plan for Change to boost the economy and support regional growth.”

Capital investment today will not only address these immediate risks over the next five years, but create skilled jobs in construction, engineering and maintenance, support vital regeneration in local areas by improving connectivity, and boost local economies by improving access to jobs, education and services.

The government will set out more detail about how funding will be allocated shortly. This funding is additional to the funding local authorities will receive for highways maintenance, which will be set out in due course.

Spending Review: £ Billions to back Scottish jobs

UK Government’s Plan for Change delivers record settlement for Scottish Government with an extra £9.1 billion over the SR period to deliver public services

Working people across Scotland will benefit from significant investment in clean energy and innovation, creating thousands of high-skilled jobs and strengthening Scotland’s position as the home of the United Kingdom’s clean energy revolution. 

The UK Government has confirmed £8.3 billion in funding for GB Energy-Nuclear and GB Energy in Aberdeen. This is alongside an increased commitment to the Acorn Carbon Capture, Usage and Storage project, which will receive development funding.

The Spending Review, outlined yesterday, Wednesday 11 June, announces targeted investment in Scotland’s most promising sectors to grow the economy and put more money in working people’s pockets.  It delivers an extra £9.1 billion over Phase 2 of the Spending Review, through the Barnett formula.

The government also confirmed £25 million for the Inverness and Cromarty Firth Freeport.  

These investments are part of a wider package, with funding for hydrogen production projects at Cromarty and Whitelee.

Secretary of State for Scotland, Ian Murray, said:  “Putting more money in the pockets of working Scots by investing in the country’s renewal is at the heart of this Spending Review and our Plan for Change.

“The Chancellor has unleashed a new era of growth for Scotland, confirming billions of pounds of investment in clean energy – including new development funding for Acorn – creating thousands of high-skilled jobs.

“Scotland’s leading role at the heart of UK defence policy has been strengthened and there is also significant investment in our trailblazing innovation, research and development sectors.

“And the Scotland Office will work with local partners to ensure hundreds of millions of pounds of new targeted support for Scottish communities and businesses goes to projects that matter to local people. This means that the UK Government is now investing almost £1.7 billion in dozens of important growth schemes across Scotland over 10 years.

“To maximise the benefit of recent trade deals with India, US and the EU we are continuing the Brand Scotland programme to promote inward investment opportunities boosting Scottish exports of our globally celebrated products.

“And we are delivering a record real-terms funding settlement for the Scottish Government with an extra £9.1 billion over the Spending Review period through the Barnett formula. That’s more money than ever before for them to invest in Scottish public services like our NHS, police, housing and schools.

“This is a historic Spending Review for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.”

Investment in Scotland to strengthen UK defence 

Speaking in the House of Commons yesterday, the Chancellor reaffirmed the government’s commitment to increase defence spending to 2.6% of GDP by April 2027, backing our Armed Forces, creating British jobs in British industries, and prioritising the security of Britain when it is most needed. 

The long-term future of the Clyde is secured through an initial £250 million investment over three years which will begin a multi-decade, multi-billion pound redevelopment of HM Naval Base Clyde through the ‘Clyde 2070’ programme.  

Investing in innovation and R&D 

Scotland will also become home to the UK’s largest and most powerful supercomputer, with up to £750 million committed to its development at Edinburgh University. This world-class facility will give scientists across all UK universities access to extraordinary computer power, further strengthening Scotland’s research and innovation capability.  

The UK Government is backing Scottish industry with a share of increased UK-wide R&D spending set to grow from £20.4 billion in 2025-26 to over £22.6 billion per year by 2029-30. Scotland will also benefit from a £410 million UK-wide Local Innovation Partnerships Fund. 

Targeted support for Scottish communities  

The government is also investing £160 million over 10 years for Investment Zones in the North East of Scotland and in Glasgow City Region, and confirming £452 million over four years for City and Growth Deals across Scotland. 

A £100 million joint investment for the Falkirk and Grangemouth Growth deal with the Scottish Government (£50 million from UK Government and £50 million from Scottish Government), demonstrating the UK Government’s continued commitment to the Grangemouth industrial area. 

A new local growth fund, and investments in up to 350 deprived communities across the UK, will maintain the same cash level as in 2025-26 under the Shared Prosperity Fund. The Ministry of Housing, Communities and Local Government and the Scotland Office, will work with local partners and the Scottish Government, to ensure money goes to projects that matter to local people. This investment will help drive growth and improve communities across Scotland. 

Supporting Scottish businesses 

The National Wealth Fund (NWF) is trialling a Strategic Partnership with Glasgow City Region to provide enhanced, hands-on support to help it develop and finance long term investment opportunities. The NWF has already made its first investment in Scotland with £43.5 million in direct equity for a sustainable packaging company, which is to build its first commercial-scale manufacturing facility near Glasgow. 

Through its Nations and Regions Investment programme the British Business Bank is delivering £150 million across Scotland to break down access to finance barriers and drive economic growth. 

The settlement also allocates £0.75 million each year to champion our ‘Brand Scotland’ trade missions to promote Scotland’s goods and services on the world stage and to encourage further growth and investment.

A record settlement for Scottish public services  

The Government has been clear that local decision-making against local priorities is central to delivering growth.  

The Scottish Government will receive the largest real terms settlement since devolution began in 1998, with an average £50.9 billion per year between 2026-27 and 2028-29, enabling the Scottish Government to deliver for working people in Scotland.  This includes £2.9 billion per year on average through the operation of the Barnett formula, with £2.4 billion resource between 2026-27 and 2028-29 and £510 million capital between 2026-27 and 2029-30.

This investment and record settlement is made possible by the ‘tough but necessary’ decisions taken in the October Budget.

Edinburgh North and Leith Labour MP Tracy Gilbert has welcomed the statement. She said: “The Comprehensive Spending Review is good for Scotland’s economy and public Services.

“After several meetings with the Secretary of States for Science, Innovation and Technology and Scotland I’m so pleased to see the announcement of funding for the new Supercomputer to be based at EdinburghUniversity.

“This major investment in Edinburgh positions us at the forefront of computing, and technological innovation, not just in the UK, but globally.”

Not unsurprisingly, the Holyrood SNP Government has a number of issues with the likely impact of the Spending Review on Scotland. Post to follow …

Spending Review: Biggest boost to social and affordable housing investment in a generation

The Chancellor is today [WEDNESDAY 11 JUNE] expected to announce the biggest boost to social and affordable housing investment in a generation.

As part of the Spending Review Rachel Reeves is expected to confirm £39 billion for a new Affordable Homes Programme over 10 years. This will turbocharge the Plan for Change commitment to get Britain building and deliver the 1.5 million homes this country needs.

This investment will be significantly higher than what the previous government spent on affordable housing. The last five year 2021-26 programme was only £11.5bn, averaging £2.3bn per year.

This means the government will be spending almost double this on affordable housing investment by the end of this Parliament (£4bn in 2029/30).

This is the first time in living memory that the government has set out a programme that provides ten years of certainty. This provides the sector with the confidence to deliver for now and the future, making it easier for those on low incomes to access a safe, high-quality home.

This comes on top of a ten-year social rent settlement that will set a rent policy for social housing from 2026 that enables providers to borrow and invest in new and existing homes, while also protecting social housing tenants. This ten year settlement will see rents rise at CPI+1% from 2026, alongside a consultation to follow shortly on how to implement social rent convergence.

It also builds on ambitious reforms to the planning system that the Government has already announced, which were judged by the OBR to add £6.8bn to the economy and boost housebuilding to its highest level in 40 years by 2029/30.

A government spokesperson said:  “The Government is investing in Britain’s renewal, so working people are better off.

“We’re turning the tide against the unacceptable housing crisis in this country with the biggest boost to social and affordable housing investment in a generation, delivering on our Plan for Change commitment to get Britain building.”

RACHEL REEVES: “WE ARE INVESTING IN BRITAIN’S RENEWAL”

Chancellor vows to ‘invest in Britain’s renewal’ as she lays out the Government’s Spending Review.
Reeves to announce the Government’s plans to invest in Britain’s security, health and economy to make working people better off.
Billions of pounds of new capital investment will boost British business and create British jobs to kickstart economic growth and drive up living standards in line with the Plan for Change, including the biggest ever local transport investment in England’s city regions outside of London and the South East.

The Chancellor will today publish the Government’s Spending Review to ‘invest in Britain’s renewal’ as she vows to make all parts of the country better off.

Rachel Reeves will announce plans for billions of pounds of investment in projects across the United Kingdom that will create jobs, prosperity, and put more money in people’s pockets.

The Chancellor will say detailed spending plans come after the Autumn Budget and Spring Statement fixed the foundations of our economy to deliver stability, outlining: “The choices in this Spending Review are possible only because of the stability I have introduced and the choices I took in the Autumn.”

The Chancellor will confirm the Government’s commitment to delivering for every part of Britain, by announcing reforms that will guarantee towns and cities outside London and the South East can benefit from new investment. This will include the biggest ever local transport infrastructure investment in England’s city regions, which will truly connect people to opportunities that improve their quality of life, a key objective of the Government’s Plan for Change.

Ms Reeves is also expected to spell out the Government’s plans to invest in the British people’s priorities of security, health and economy.

The Spending Review comes on the back of the Government’s announcements in recent days to invest £15.6 billion in local transport projects, £86 billion to boost science and technology, and create ten thousand jobs by building Sizewell C Nuclear Power Station – which will drive forward Britain’s status as a clean energy superpower, as outlined in the Plan for Change.

Speaking in the House of Commons, the Chancellor 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 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. That is what this Spending Review will deliver.”

She will add: “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.”

Thousands of jobs to be created as Government announces multi-billion-pound investment to build Sizewell C

‘GOLDEN AGE OF CLEAN ENERGY ABUNDANCE’ – ED MILIBAND

10,000 jobs, including 1,500 apprenticeships, to be created as the Government announces multi-billion investment to build Sizewell C.
Chancellor to confirm funding at the GMB Congress ahead of Spending Review, as Energy Secretary vows ‘golden age’ of nuclear.
Investment to deliver clean power to millions of homes, cut energy bills and boost energy security.
Government commits over £6 billion of investment to nuclear submarine industrial base to deliver on Strategic Defence Review

Ten thousand jobs will be created as the Government announces a £14.2 billion investment to build Sizewell C nuclear plant as part of the Spending Review, ending years of delay and uncertainty.

The Chancellor is set to confirm the funding at the GMB Congress later today ahead of the Government’s Spending Review, as the Energy Secretary vows a ‘golden age’ of nuclear to boost the UK’s energy security.

The Government’s investment will go towards creating 10,000 jobs, including 1,500 apprenticeships, and support thousands more jobs across the UK.

The equivalent of around six million of today’s homes will be powered with clean homegrown energy from Sizewell C. The investment in clean, homegrown power brings to an end decades of dithering and delay, with the Government backing the builders in the drive for energy security and kick-starting economic growth. 

The announcement comes as the Government is set to confirm one of Europe’s first Small Modular Reactor programmes. This comes alongside record investment in R&D for fusion energy, worth over £2.5 billion over five years. Taken together with Sizewell C, this delivers the biggest nuclear building programme in a generation.

Clean, home-grown power at Sizewell C will help drive the UK’s energy security, as part of the Government’s mission to protect family finances by replacing the UK’s dependency on fossil fuel markets controlled by dictators with homegrown power that we control.

Chancellor of the Exchequer, Rachel Reeves, said:  “Today we are once again investing in Britian’s renewal, with the biggest nuclear building programme in a generation. This landmark decision is our Plan for Change in action.

“We are creating thousands of jobs, kickstarting economic growth and putting more money people’s pockets.”

Energy Secretary Ed Miliband said:  “We will not accept the status quo of failing to invest in the future and energy insecurity for our country. 

“We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.

“This is the Government’s clean energy mission in action – investing in lower bills and good jobs for energy security.” 

Sizewell C 

Sizewell C will provide 10,000 people with employment at peak construction and support thousands more jobs across the UK, including 1,500 apprenticeships.

The company has already signed £330 million in contracts with local companies and will boost supply chains across the UK with 70% of contracts predicted to go to 3,500 British suppliers – supporting new jobs in construction, welding, and hospitality. Jobs in the nuclear industry pay well above national averages and the government is committed to working with nuclear trade unions such as the GMB, Unite, and Prospect, who will continue to play a pivotal role in building the industry.  

Despite the UK’s strong nuclear legacy, opening the world’s first commercial nuclear power station in the 1950s, no new nuclear plant has opened in the UK since 1995, with all of the existing fleet except Sizewell B likely to be phased out by the early 2030s. 

Sizewell C was one of eight sites identified in 2009 by then-Energy Secretary Ed Miliband as a potential site for new nuclear. However, the project was not fully funded in the 14 years that followed under subsequent Governments. 

The Government’s nuclear programme is now the most ambitious for a generation – once small modular reactors and Sizewell C come online in the 2030s, combined with Hinkley Point C, this will deliver more new nuclear to grid than over the previous half century combined.

Small Modular Reactors 

Great British Nuclear is expected to announce the outcome of its small modular reactor competition imminently, the first step towards the goal of driving down costs and unlocking private finance with a long-term ambition to bring forward one of the first SMR fleets in Europe. 

The government’s nuclear resurgence will support the UK’s long-term energy security, with small modular reactors expected to power millions of homes with clean energy and help fuel power-hungry industries like AI data centres.  

This follows reforms to planning rules announced by the Prime Minister in February 2025 to make it easier to build nuclear across the country – changing the rules to back the builders of this nation, and saying no to the blockers who have strangled our chances of cheaper energy, growth and jobs for far too long.  

The government is also looking to provide a route for private sector-led advanced nuclear projects to be deployed in the UK, alongside investing £300m in developing the world’s first non-Russian supply of the advanced fuels needed to run them.  

Companies will be able to work with the government to continue their development with potential investment from the National Wealth Fund.

Fusion Energy 

The government is also making a record investment in R&D for fusion energy, investing over £2.5 billion over 5 years. This includes progressing the STEP programme (Spherical Tokamak for Energy Production), the world-leading fusion plant in Nottinghamshire, creating thousands of new jobs and with the potential to unlock limitless clean power. 

This builds on the UK’s global leadership to turbocharge economic growth in the Oxford-Cambridge corridor, while helping deliver the UK’s flagship programme to design and build a prototype fusion power station on the site of a former coal-fired plant.  

Defence

To secure the UK as a leader in both civil and defence nuclear, the government is also making continued long-term investment in our Defence Nuclear Enterprise and its industrial base, which is critical for our national security while also being a significant generator of economic opportunities, jobs and growth across the entire country.

Further investments in the defence nuclear sector include over £6bn over the SR period to enable a transformation in the capacity, capability and productivity of the UK’s submarine industrial base, including at BAE Systems in Barrow and Rolls-Royce Submarines in Derby – to deliver the increase in the submarine production rate announced in the Strategic Defence Review.

In addition, we will embark on a multi-decade, multi-billion redevelopment of HMNB Clyde, with an initial £250m of funding over 3 years, supporting jobs, skills and growth across the West of Scotland.

The government will also invest over £420m of additional funding in Sheffield Forgemasters, securing 700 existing skilled jobs and creating over 900 new construction roles.

U-Turn: Nine million pensioners to receive Winter Fuel Payments

Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this winter.
This increased threshold means no lower or middle-income pensioners will miss out, with the vast majority – over three quarters – of pensioners in England and Wales receiving the payment.
Support will continue to be targeted, with pensioners above this threshold having the payment automatically recovered or able to opt out.

Nine million pensioners to receive Winter Fuel Payments this winter as all pensioners in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment.

This extends eligibility to the vast majority of pensioners, with around 9 million, or over three quarters, benefitting. This threshold is well above the income level of pensioners in poverty and is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer

This change will cost around £1.25 billion in England and Wales and see means-testing of the Winter Fuel Payment save around £450 million, subject to certification by the Office for Budget Responsibility compared to the system of universal Winter Fuel Payments.

The costs will be accounted for at the Budget and incorporated into the next OBR forecast. The Chancellor will take decisions on funding in the round at that forecast to ensure the government’s non-negotiable fiscal rules are met. This will not lead to permanent additional borrowing.

No pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the threshold it will be automatically recovered via HMRC.

The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter. Over 12 million pensioners across the United Kingdom will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 this parliament.

Chancellor of the Exchequer Rachel Reeves said: “Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.

“But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.”

Pensioners above the £35,000 threshold will have the full amount of the Winter Fuel Payment they received automatically collected via PAYE, or via their Self-Assessment return.

No one will need to register with HMRC for this or take any further action. Pensioners who want to opt out and not receive the payment at all, will be able to do so, with details to be confirmed.

Making these changes now gives people certainty and ensures that payments can be made in time for this winter. Payments will be better targeted than before 2024-25 when they were previously paid to all pensioners regardless of their income, meaning those on lower and middle incomes will still receive the help they need, ensuring fairness for both pensioners and taxpayers.

Approximately 2 million individuals in England and Wales over State Pension age have taxable incomes above £35,000.

DWP: Spring Statement Welfare Reforms

Chancellor Rachel Reeves: “We believe if you can work, you should work. But if you can’t work, you should be properly supported”

Significant welfare reforms were announced to build the economy and get Britain working in the Spring Statement

£1 billion will be invested to provide personalised employment, health and skills support from 2026-2027 to help people start or stay in work

This will build on existing support from WorkWell, Connect to Work and the Get Britain Working trailblazers

Universal Credit Standard Allowance will be increased for new and existing claims above inflation from 2026-2027 This means the standard allowance weekly rate for a single person aged 25 and over, will increase from £92 in 2025-2026 to £106 in 2029-2030.

To ensure PIP is focused on those with higher needs, a new eligibility requirement will be introduced Please be assured there will be no immediate changes to your health and disability related benefit payment.

https://gov.uk/government/collections/spring-statement-2025…