Scottish Secretary Ian Murray welcomes Chancellor’s £2.2billion defence budget boost
Chancellor Rachel Reeves this week pledged a new era of security and national renewal as she delivered a Spring Statement to ‘kickstart economic growth, protect working people and keep Britain safe’.
Scottish Secretary Ian Murray has welcomed her measures, including a £2.2 billion increase in the UK-wide defence budget for 2025-26, on top of £2.9 billion announced at Autumn Budget.
Mr Murray said: “We are living in an increasingly insecure world, and the extra £2.2 billion for defence – on top of the £2.9 billion announced at Autumn Budget – will make Britain stronger and safer.
“This is a huge boost for Scotland’s world-leading defence sector, which delivers Scottish economic growth and more highly-skilled jobs. The increase will also mean better homes for our military personnel and families, including the thousands based in Scotland.
“Today’s announcements underpin the great strides being made by the UK Government in achieving stability in our public finances. There have been three interest rate cuts since the general election.
“Next week the increase in the minimum wage will mean a pay rise for hundreds of thousands of workers in Scotland and our employment rights legislation will deliver the biggest upgrade in workers’ rights in a generation.
“The Spring Statement also delivered an extra £28 million for the Scottish Government. That is on top of their £4.9 billion extra from the budget, creating a record £47.7 billion settlement for 25/26, announced at the Autumn Budget.
“This is the biggest budget settlement in the history of devolution and an end to austerity. The Scottish Government must now use that wisely – to improve Scotland’s failing public services.”
This latest defence boost builds on the Chancellor’s recent visit to Babcock in Rosyth where she also announced that UK defence exporters would benefit from a £2 billion increase to UK Export Finance lending capacity.
Her Spring Statement underlines that growth is at the heart of the UK Government’s Plan for Change with £13 billion of additional capital spend allocated alongside the defence funding boost.
It follows the Budget in the autumn where it was announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes an additional £3.4 billion through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.
The measures announced this week top up these Barnett consequentials by a further £28 million in 2025/26.
The Scottish Government continues to receive over 20% more per person than equivalent UK Government spending in the rest of the UK, translating into over £8.5 billion more in 2025-26. Block Grant funding from 2026-27 onwards will be confirmed at Phase 2 of the Spending Review, which concludes on 11 June 2025.
The Chief Secretary to the Treasury will meet with his counterparts from the devolved governments to discuss their priorities ahead of its conclusion.
‘Hard working’ families in England to get safe and secure homes as Chancellor announces £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes
Landmark announcement part of Plan for Change to deliver security for working people by growing the economy and building 1.5 million homes.
£2 billion of new funding will only support development on sites that will deliver in this Parliament, getting spades in the ground quickly to build homes in places such as Manchester and Liverpool.
Helping hard working families get safe and secure homes and kickstarting economic growth are driving the government’s agenda, as the Chancellor and Deputy Prime Minister today (Tuesday 25 March) announced up to 18,000 new social and affordable homes will be built with a £2 billion injection of investment to deliver the Prime Minister’s Plan for Change.
The announcement hails a significant milestone on the government’s promise to build 1.5 million new homes whilst driving economic growth by getting Britain building again. It follows the government’s plan to inspire the next generation of British engineers, brickies and chippies, by training 60,000 construction workers to tackle skills shortages and get more young people into jobs.
The £2 billion investment boost comes as a down payment from the Treasury ahead of more long term investment in social and affordable housing planned later this year, which will provide additional funding for 2026-27 and well as for future years. This forms part of the government’s plan for tackling the housing crisis that has held working families back from the stability and security that comes with a safe roof over your head.
Thousands of new affordable homes will start construction by March 2027 and will complete by the end of this Parliament. The government is encouraging providers to come forwards as soon as possible with projects and bids to ramp up the delivery of new housing supply, in turn making the dream of home ownership a reality for more people across the country.
Today’s investment will also unlock development and opportunity on sites that are ready and waiting for spades in the ground in places such as Manchester or Liverpool.
The Chancellor announced plans on a visit to an affordable housing site in Stoke-On-Trent with the Deputy Prime Minister, working hand in hand to deliver the biggest boost to affordable and social housing in a generation.
Deputy Prime Minister and Housing Secretary, Angela Rayner said: “Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of home ownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.
“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”
Chancellor of the Exchequer, Rachel Reeves said: “We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.
“At the conclusion of the current Spending Review process on 11 June 2025, the government will announce further long-term investment into the sector in England, delivering the biggest boost to social and affordable housing in a generation.”
Kate Henderson, Chief Executive at the National Housing Federation, says: “This funding top-up is hugely welcome and demonstrates the government’s commitment to delivering genuinely affordable, social housing for families in need across the country. The additional £2 billion will prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced.
“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness.
“Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.
Charlie Nunn, CEO, Lloyds Banking Group said: “A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes.
“As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.”
David Thomas, CEO at Barratt Redrow said:“To increase construction activity and build the homes the UK desperately needs, we need support for demand across all tenures.
“As well as providing more much-needed affordable homes, this welcome investment will help unlock mixed-tenure developments and to create jobs and economic growth across the country.”
Stephen Teagle, Chair of The Housing Forum said:“This additional funding signals that the Government is listening to the sector and reaffirms its strong commitment to accelerating the delivery of much-needed affordable housing while driving economic growth.
“It represents an unprecedented intervention which, when paired with sustained, long-term investment, will be instrumental in meeting the growing demand for affordable homes.
“Now, it’s up to the industry to rise to the challenge — accelerating delivery, building momentum towards the government’s target of 1.5 million new homes, and ensuring we provide the housing this country urgently needs.”
£1.6 billion investment to tackle scourge of potholes to be delivered to councils from next month as PM tells councils to put cash to use
for the first time every council in England must publish how many potholes they’ve filled or lose road cash
local authorities that comply will receive their full share of the £500 million roads pot – enough to fill the equivalent of 7 million potholes a year, as part of the government’s Plan for Change
UK government also announces £4.8 billion for 25/26 for motorways and major A-roads including economy boosting road schemes on the A47 and M3
The public will now see exactly what’s being done to tackle potholes, as the government demands councils prove their progress or face losing cash.
From mid-April, local authorities in England will start to receive their share of the government’s record £1.6bn highway maintenance funding, including an extra £500m – enough to fill 7 million potholes a year.
But to get the full amount, all councils in England must from today (24 March 2025) publish annual progress reports and prove public confidence in their work. Local authorities who fail to meet these strict conditions will see 25% of the uplift (£125m in total) withheld.
Also today, the Transport Secretary has unveiled £4.8bn funding for 2025/6 for National Highways to deliver critical road schemes and maintain motorways and major A-roads.
This cash will mean getting on with pivotal schemes in construction, such as the A428 Black Cat scheme in Cambridgeshire, and starting vital improvements to the A47 around Norwich and M3 J9 scheme in Hampshire, building thousands of new homes, creating high-paid jobs, connecting ports and airports, to grow the economy and deliver the Plan for Change.
It comes as figures from the RAC show drivers encounter an average of 6 potholes per mile in England and Wales, and pothole damage to cars costs an average £600 to fix. According to the AA, fixing potholes is a priority for 96% of drivers.
This government is delivering its Plan for Change to rebuild Britain and deliver national renewal through investment in our vital infrastructure which will drive growth and put more money in working people’s pockets by saving them costs on repairs.
Prime Minister Keir Starmer said: “The broken roads we inherited are not only risking lives but also cost working families, drivers and businesses hundreds – if not thousands of pounds – in avoidable vehicle repairs.
“Fixing the basic infrastructure this country relies on is central to delivering national renewal, improving living standards and securing Britain’s future through our Plan for Change.
“Not only are we investing an additional £4.8 billion to deliver vital road schemes and maintain major roads across the country to get Britain moving, next month we start handing councils a record £1.6 billion to repair roads and fill millions of potholes across the country.
“British people are bored of seeing their politicians aimlessly pointing at potholes with no real plan to fix them. That ends with us. We’ve done our part by handing councils the cash and certainty they need – now it’s up to them to get on with the job, put that money to use and prove they’re delivering for their communities.”
The Transport Secretary, Heidi Alexander, said: “After years of neglect we’re tackling the pothole plague, building vital roads and ensuring every penny is delivering results for the taxpayer.
“The public deserves to know how their councils are improving their local roads, which is why they will have to show progress or risk losing 25 per cent of their £500m funding boost.
“Our Plan for Change is reversing a decade of decline and mending our pothole-ridden roads which damage cars and make pedestrians and cyclists less safe.”
To ensure councils are taking action, they must now publish reports on their websites by 30 June 2025, detailing how much they are spending, how many potholes they have filled, what percentage of their roads are in what condition, and how they are minimising streetworks disruption.
They will also be required to show how they are spending more on long-term preventative maintenance programmes and that they have robust plans for the wetter winters the country is experiencing – making potholes worse.
By the end of October, councils must also show they are ensuring communities have their say on what work they should be doing, and where. The public can also help battle back against pothole ridden roads by reporting them to their local council, via a dedicated online portal.
To further protect motorists given continued cost-of-living pressures and potential fuel price volatility amid global uncertainty, the government has frozen fuel duty at current levels for another year to support hardworking families and businesses, saving the average car driver £59.
Edmund King, AA president and member of the Pothole Partnership, said: “Getting councils to show value for money before getting full funding is a big step in the right direction, as it will encourage a more concerted attack on the plague of potholes.
“At the same time, local authorities can share best practice, so others can learn what new innovations and planned maintenance techniques have worked for them.”
The £4.8bn for National Highways will protect the country’s strategic road network, which provides critical routes and connections across the country for people, businesses and freight to help drive for growth as part of Plan for Change.
The £4.8bn includes a record £1.3bn investment to keep this vital network in good repair, so the network remains fit for the future, and £1.8bn for National Highways’ daily operations that are critical to ensuring the network runs safely and smoothly for millions of people and businesses that rely on it every day. As well as £1.3bn for essential improvement schemes to unlock growth and housing.
Since entering office, the UK government has approved over £200m for the A47 Thickthorn Junction, and £290m for M3 Junction 9 plus £90m for local road schemes like the A130 Fairglen Interchange, the South-East Aylesbury Link Road, the A350 Chippenham Bypass, the A647 scheme in Leeds. This is a total of over £580m for schemes to get Britain moving.
Up to 60,000 more engineers, brickies, sparkies, and chippies to be trained by 2029, as Chancellor outlines how the Government will train more workers to tackle skills shortages and inspire the next generation into the construction sector.
New training will help deliver 1.5 million homes which will transform communities and drive growth through the Plan for Change.
Reforms will get young people into well paid, high skilled, jobs in the construction sector by funding additional placements, establishing Technical Excellence Colleges, launching new foundation apprenticeships, and expanding Skills Bootcamps.
This injection of over £600 million over the next four years will also encourage experienced builders to help train and inspire the next generation.
Ahead of the Spring Statement on Wednesday {26 March) the Chancellor has announced £600 million worth of investment to train up to 60,000 more skilled construction workers.
This will deliver well paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament.
Chancellor Rachel Reeves said: “We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure.
“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”
The sector is facing significant shortages, the latest Office for National Statistics figures show that there are over 35,000 job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector. Demand is expected to increase further to deliver the homes and infrastructure that this country needs.
Funding and reforms announced today will pay for more training places, ensure a sustainable flow of skilled construction workers and help businesses invest more in training. It will encourage the men and women who have spent decades working on building sites, to pass on their skills to the next generation of construction workers.
Building the skilled workforce of the future is key to driving economic growth, the central mission of the Government’s Plan for Change. These construction jobs are the type of secure, well paid, in demand jobs that will help put more money in working people’s pockets and fuel growth.
Education Secretary, Bridget Phillipson, said: “Skills are crucial to this government’s mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry.
“We are being held back by the largescale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission.
“These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”
Today’s announcement will provide £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses.
Skills Bootcamps in the construction sector will also be expanded, with £100 million of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so.
All Local Skills Improvement Plan (LSIP) areas will benefit from £20 million to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, sharing their vital expertise by training the next generation of workers.
Construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40 million, which will be launching in August 2025. This will inspire more young people into the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career.
As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth and Skills Levy.
A further £100 million of Government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships.
This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.
To ensure employers are able to work collaboratively to secure the workforce needed to meet future demand, the Government will sponsor a new Construction Skills Mission Board. Co-chaired by Government and by Mark Reynolds, Executive Chair of Mace, the Board will be empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.
The government’s communications campaigns continue to promote skills and their contribution to opportunity and growth for individuals and employers.
In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry’s value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction.
The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors, and new shorter apprenticeships. Changes to end point assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.
Last year the Education Secretary announced new Construction Skills Hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government’s homebuilding drive.
Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership Council said: “This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament and its ambitious plans for infrastructure delivery.
“It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.
“Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”
Tim Balcon, CITB (Construction Industry Training Board) Chief Executive, said: “We are delighted with the support the Government is giving the construction sector with increased investment.
“This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5 new homes for people that desperately need them.
“As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”
People across the UK will benefit from upgraded sports facilities in their local area thanks to £100 million invested by UK Government
Major package to upgrade hundreds of local grassroots sports facilities with new and improved pitches, changing rooms, goalposts and floodlights
Investment will target deprived areas and support greater access and participation levels among under-represented groups
At least 40% of funded projects have a multi-sport offer ensuring more can participate and get active as the Government delivers its ‘Plan for Change‘
People across the UK will benefit from upgraded sports facilities in their local area thanks to £100 million invested by government yesterday.
Working together with the Premier League, The FA and Government’s Football Foundation in England, the Cymru Football Foundation in Wales, and the Football Associations in Scotland and Northern Ireland, the funding is expected to support hundreds of new and improved pitches, changing rooms, goalposts and floodlights to improve access to sport and physical activity for local communities.
It will be targeted at deprived areas and support greater access and participation levels among under-represented people including women and girls, ethnic minority groups and disabled players.
The major package delivers on the Government’s Plan for Change, with the funding designed to break down barriers to opportunity and tackle persistent health inequalities through prevention, that will support an NHS fit for the future.
These facilities also encourage communities to come together and give young people opportunities to build vital skills and connections while creating a sense of purpose and pride in where they live.
Culture Secretary Lisa Nandy announced the funding during a visit to Bonnyrigg Rose Community Football Club, a grassroots football facility in Midlothian, Scotland which supports over 700 players.
The funding will be invested in sites during 2025/26, with £82.3 million allocated to projects in England (including a £2 million uplift of new investment committed in the current financial year), £8.6 million in Scotland, £6.1 million in Wales and £3 million in Northern Ireland.
Culture Secretary Lisa Nandy said: “Grassroots sport clubs are at the heart of communities across the UK. That’s why we’re investing £100 million to support new and upgraded pitches, changing rooms and clubhouses across the country, providing transformational funding to the areas that need it most.
“As we deliver our Plan for Change, we will remove barriers to an active lifestyle and increase opportunity for all, ensuring that wherever people may live, they can access high quality sports facilities and experience the joy that sport brings.
Government funding through the Multi-Sport Grassroots Facilities Programme is amplified by significant contributions by The FA and Premier League in England. Delivery partners also leverage investment from local stakeholders through initiatives such as the Scottish FA and Scottish Football Partnership Trust’s ‘Pitching in’ campaign which aims to raise £50 million for football facilities over the next five years. “
Of the funded projects, at least 40% will have a multi-sport offer so that more people can participate in sports other than football, meaning more people can get access to a wider variety of sports and activities that appeal to them including rugby, cricket and basketball.
Clubs and organisations across the UK are now being urged to come forward and apply for funding. Applications can be made in England via the Football Foundation on an ongoing basis, and in Wales via the Cymru Football Foundation.
Dedicated windows are opening shortly in Scotland and Northern Ireland with those interested encouraged to check relevant FA websites for more details. The first tranche of beneficiaries are expected to be confirmed in summer 2025.
The Secretary of State for Scotland Ian Murray, said: “Grassroots sports are the backbone of Scottish communities, providing opportunities for individuals of all ages and abilities to take part in physical activities.
“Through this scheme almost 100 facilities across Scotland, including in our island and rural communities, have been built or upgraded and with this new funding we can look forward to many more.
“As a lifelong football fan I am excited as we build towards hosting Euro2028. I look forward to working with the SFA to ensure everyone has the opportunity to play our national sport – as we support the team on the biggest stage.”
Scottish FA President, Mike Mulraney said: “When I became President, I made no secret of the fact that improving facilities at all levels should be the association’s No.1 priority.
“We are grateful to the Department of Culture, Media and Sport and partners for this latest commitment, which will enable us to further improve the infrastructure of our national sport.
“This will increase participation, improve health and wellbeing and allow more people to experience the Power of Football.
“It follows the Scottish FA’s commitment to ensuring profits are diverted to facilities and infrastructure via our Pitching In fund and I look forward to further strengthening our partnership with UK Government, DCMS and Scottish Government, as well as philanthropic and business communities, to rejuvenate Scottish football’s facilities footprint.”
Number of people on the highest rate of Universal Credit with no support to look for work has almost quadrupled since the Covid pandemic
Figures show 1.8 million people now in Limited Capability for Work Related Activity (LCWRA) category as broken Work Capability Assessment continues to push people out of work
New figures emerge ahead of proposals to reform health and disability benefits and builds on the plan to get Britain working
1.8 million people on Universal Credit are getting no support to find work, according to new data released yesterday (Thursday 13 March).
The number has almost quadrupled since the start of the pandemic when 360,000 people were considered too sick to look for work – a 383% rise in less than five years. In the last year alone, the number has risen by from 1.4 million people to 1.8 million.
The number of young people aged 16 to 24 on LCWRA has risen by 249% from 46,000 to 160,000 since the pandemic – demonstrating a worrying increase in the number people becoming trapped in inactivity early in life, with almost one million young people not in education, employment, or training.
The government is already taking action to get people into work through its plan to get Britain working which will empower local mayors to tackle economic inactivity, overhaul Jobcentres, and deliver a Youth Guarantee so every young person is either earning or learning.
Building on the biggest employment reforms for a generation, Liz Kendall is due to announce radical welfare reforms to create a thriving and inclusive labour market – as part of the government’s Plan for Change to unlock work, boost growth and raise living standards.
Work and Pensions Secretary, Rt Hon. Liz Kendall MP, said: “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.
“This government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing.”
In the current dysfunctional system, a person is placed in binary categories of either “fit for work” or “not fit for work” through the Work Capability Assessment (WCA) – an assessment the government has said it will either reform or replace, so it no longer drives people who want to work to a life on benefits.
Through this process, those not fit for work are told they have Limited Capability for Work Related Activity (LCWRA) – meaning they won’t receive employment support or further engagement from the system at any point following their assessment – effectively abandoning and locking them out of work indefinitely.
The current system, in which people 25 and over on the standard rate of UC get £393.45 a month and those with a health condition get an additional £416.19, gives an incentive for people to say they can’t work – and get locked out of help and support – simply to get by financially.
Over the past five years, 67% of people on Universal Credit who have been through a WCA were considered LCWRA – a symptom of the assessment system pushing people to prove their inability to work for a more generous payout.
The government says it has hit the ground running to tackle health-related inactivity at its root, improving the country’s wellness by investing £26 billion in the NHS, delivering 2 million extra appointments to tackle medical waiting lists, and hiring an extra 8,500 mental health workers, so people get the treatment they need to stay healthy and in work.
This comes alongside the £250 million plan to get Britain working and the recently announced 1,000 Work Coaches will be redeployed to offer intensive employment support to around 65,000 sick and disabled people – a ‘downpayment’ on our plan to restore fairness to our welfare system.
Ending NHS England will ‘reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients’
Major reforms to empower NHS staff and put patients first
Changes will drive efficiency and empower staff to deliver better care as part of Prime Minister’s Plan for Change
Move will reduce complex bureaucracy and undo the damage caused by 2012 reorganisation
Reforms to reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients have been set out today by the Prime Minister, Keir Starmer.
NHS England will be brought back into the Department of Health and Social Care (DHSC) to put an end to the duplication resulting from 2 organisations doing the same job in a system currently holding staff back from delivering for patients.
By stripping back layers of red tape and bureaucracy, more resources will be put back into the front line rather than being spent on unnecessary admin.
The reforms will reverse the 2012 top-down reorganisation of the NHS which created burdensome layers of bureaucracy without any clear lines of accountability. As Lord Darzi’s independent investigation into the state of the NHS found, the effects of this are still felt today and have left patients worse off under a convoluted and broken system.
The current system also penalises hardworking staff at NHS England and DHSC who desperately want to improve the lives of patients but who are being held back by the current overly bureaucratic and fragmented system.
Health and Social Care Secretary, Wes Streeting, said: “This is the final nail in the coffin of the disastrous 2012 reorganisation, which led to the longest waiting times, lowest patient satisfaction and most expensive NHS in history.
“When money is so tight, we cannot justify such a complex bureaucracy with 2 organisations doing the same jobs. We need more doers and fewer checkers, which is why I’m devolving resources and responsibilities to the NHS frontline.
“NHS staff are working flat out but the current system sets them up to fail. These changes will support the huge number of capable, innovative and committed people across the NHS to deliver for patients and taxpayers.
“Just because reform is difficult does not mean it should not be done. This government will never duck the hard work of reform.
“We will take on vested interests and change the status quo, so the NHS can once again be there for you when you need it.”
Sir James Mackey, who will be taking over as Transition CEO of NHS England, said: “We know that while unsettling for our staff, today’s announcement will bring welcome clarity as we focus on tackling the significant challenges ahead and delivering on the government’s priorities for patients.
“From managing the COVID pandemic, the biggest and most successful vaccine campaign which got the country back on its feet, to introducing the latest, most innovative new treatments for patients, NHS England has played a vital role in improving the nation’s health. I have always been exceptionally proud to work for the NHS – and our staff in NHS England have much to be proud of.
“But we now need to bring NHS England and DHSC together so we can deliver the biggest bang for our buck for patients, as we look to implement the 3 big shifts – analogue to digital, sickness to prevention and hospital to community – and build an NHS fit for the future.”
Incoming NHS England chair, Dr Penny Dash, said: “I am committed to working with Jim, the board and wider colleagues at NHS England to ensure we start 2025 to 2026 in the strongest possible position to support the wider NHS to deliver consistently high-quality care for patients and value for money for taxpayers.
“I will also be working closely with Alan Milburn to lead the work to bring together NHS England and DHSC to reduce duplication and streamline functions.”
Work will begin immediately to return many of NHS England’s current functions to DHSC. A longer-term programme of work will deliver the changes to bring NHS England back into the department, while maintaining a ‘laser-like focus’ on the government’s priorities to cut waiting times and responsibly manage finances.
It will also realise the untapped potential of the NHS as a single payer system, using its centralised model to procure cutting-edge technology more rapidly, get a better deal for taxpayers on procurement and work more closely with the life sciences sector to develop the treatments of the future.
The reforms to deliver a more efficient, leaner centre will also free up capacity and help deliver significant savings of hundreds of millions of pounds a year, which will be reinvested in frontline services to cut waiting times through the government’s Plan for Change.
The changes will crucially also give more power and autonomy to local leaders and systems – instead of weighing them down in increasing mountains of red tape, they will be given the tools and trust they need to deliver health services for the local communities they serve with more freedom to tailor provision to meet local needs.
The number of people working in the centre has more than doubled since 2010, when the NHS delivered the shortest waiting times and highest patient satisfaction in its history. Today, the NHS delivers worse care for patients but is more expensive than ever, meaning that taxpayers are paying more but getting less.
Too much centralisation and over-supervision has led to a tangled bureaucracy, which focuses on compliance and box-ticking, rather than patient care, value for money and innovation. In one example, highlighted by Dame Patricia Hewitt’s 2023 review, one integrated care system received 97 ad-hoc requests in a month from DHSC and NHS England, in addition to the 6 key monthly, 11 weekly and 3 daily data returns.
The review also revealed the challenges caused by duplication – citing examples of tensions, wasted time and needless frictional costs generated by uncoordinated pursuit of organisational goals that do not take account of their wider effects.
Substantial reform, not just short term investment, is needed to deliver the government’s Plan for Change mission to get the NHS back on its feet and fit for the future, and this announcement is one of a series of steps the government is taking to make the NHS more productive and resilient so that it can meet the needs of the population it cares for.
NHS England’s new leadership team, Sir Jim Mackey and Dr Penny Dash, will lead this transformation while re-asserting financial discipline and continuing to deliver on the government’s priority of cutting waiting times through the Plan for Change.
These reforms will provide the structure necessary to drive forward the 3 big shifts identified by government as crucial to building an NHS fit for the future – analogue to digital, sickness to prevention and hospital to community.
Since July, the government has already taken significant steps to get the NHS back on its feet, including bringing an end to the resident doctor strikes, delivering an extra 2 million appointments 7 months early and cutting waiting lists by 193,000 since July.
Commenting on the Prime Minister’s announcement that NHS England is to be abolished, UNISON general secretary Christina McAnea said: “Everyone wants more to be spent on frontline services so the sick and injured can be treated sooner.
“Delays and long waits for operations and appointments have left several million unable to work, with a knock-on effect on economic growth.
“More of a focus and greater investment in the entire NHS team of staff, not just nurses and doctors, would help turn around the fortunes of a floundering NHS.
“Put simply the health service needs thousands more staff and to be able to hold on to experienced employees. At the moment, it’s struggling to do that. Giving staff a decent pay rise would help no end.
“But this announcement will have left NHS England staff reeling. Just days ago they learned their numbers were to be slashed by half, now they discover their employer will cease to exist.
“The way the news of the axing has been handled is nothing short of shambolic. It could surely have been managed in a more sympathetic way.
“Thousands of expert staff will be left wondering what their future holds. Wherever possible, their valuable skills must be redeployed and used to the benefit of the reformed NHS and patients.
“Ministers have to reassure employees right across the NHS that there’s a robust plan to rejuvenate a flailing NHS and deliver for working people.”
Following Sir Keir Starmer’s announcement to scrap NHS England, a leading cybersecurity expert has warned the move could leave the health service dangerously exposed to cyberattacks.
While the proposed reforms aim to cut bureaucracy and streamline services, he warns that removing NHS England’s centralised cybersecurity infrastructure is “like a hospital suddenly removing its emergency department and expecting patients to fend for themselves.”
Graeme Stewart, head of public sector at Check Point Software, said, “While the Prime Minister’s sweeping reforms cover everything from cutting red tape to reining in bureaucracy, one critical area must not be left in the lurch: our cybersecurity defences. Scrapping NHS England’s centralised services is not just a bureaucratic shake-up; it’s like a hospital suddenly removing its emergency department and expecting patients to fend for themselves.
“At present, NHS England provides the backbone for our cyber defences, from a unified email service to specialised threat protection. Removing these central functions risks leaving individual NHS Trusts to fend off cyberattacks with a patchwork of under-resourced teams. As the adage goes, ‘a chain is only as strong as its weakest link,’ and our cyber chain is already under severe strain with attacks on the rise.
“Moreover, dismantling these central services could open the door for a surge of third-party suppliers to step in. While more suppliers might seem like a win for competition, it also fragments our defence and leaves us vulnerable; each new supplier is a potential weak link in our security armour.
“We need a robust, unified security system that acts like a digital fortress, not a hodgepodge of outsourced patches. In the midst of these broad reforms, let’s ensure the cyber element isn’t left out in the cold. Our digital defences must be retained or replaced with an equally robust solution; otherwise, we’re setting the stage for a cyber disaster.”
New era of global instability means Government must go further and faster in delivering missions.
PM to take on ‘cottage industry of checkers and blockers slowing down delivery for working people’.
Digital revolution underpins moves to a more agile, effective and active state – refocused on delivering Plan for Change.
Tech and AI teams will drive improvement and efficiency in public services with 2,000 new TechTrack apprentices.
Taxpayer’s money saved by slashing waste on pricey contractors.
Costs of regulation to be slashed for businesses to boost growth that puts more money in working people’s pockets.
The Prime Minister will today set out how he will “go further and faster in reshaping the state to make it work for working people.”
Reflecting on international events of the last few weeks, he will say that national security is economic security, and therefore “the fundamental task of politics right now is to take the decisions needed on national security, to deliver security for people at home.”
The Prime Minister will set out his belief in the power of “an active government that takes care of the big questions, so people can get on with their lives.”
He will share his diagnosis that the state has become bigger, but weaker and isn’t delivering on its core purpose, before outlining his mission to reshape it. He will say that the new global “era of instability” means that the Government must double down in delivering security for working people and renewing our nation.
The intervention follows the Government’s step change in approach to regulation and regulators, following the abolition of the Payments Systems Regulator as the Prime Minister commits to a government wide target to cut administrative costs of regulation by 25%.
New plans announced to support delivery will include new AI and tech teams sent into public sector departments to drive improvements and efficiency in public services. One in 10 civil servants will work in tech and digital roles within the next five years with 2,000 tech apprenticeships turbo charging the transformation.
The moves come as the Government slashes the costs of red tape by a quarter for businesses.
It is expected the Prime Minister will say: “The great forces buffeting the lives of working people, and an era of instability driving in their lives, the need for greater urgency now could not be any clearer. We must move further and faster on security and renewal.
“Every pound spent, every regulation, every decision must deliver for working people…If we push forward with the digitisation of government services. There are up to £45bn worth of savings and productivity benefits, ready to be realised.
“And that’s before we even consider the golden opportunity of artificial intelligence. An opportunity I am determined to seize.”
Fundamentally reshaping the way the British state delivers and serves working people by becoming more tech-driven, productive, agile and Mission focused will be set out alongside further detail on the digitalisation of public services and the wider British state.
The approach will be underpinned by the mantra that “No person’s substantive time should be spent on a task where digital or AI can do it better, quicker and to the same high quality and standard.”
The digitisation will include the sweeping modernisations, a new apprenticeship scheme, TechTrack, will bring 2,000 apprentices into public sector departments by 2030, making sure the UK Government has the skills needed to overhaul public services using tech – creating new opportunities across the country and delivering on the Plan for Change.
DSIT unveiled this week that initial tests of an AI helper for call centre workers included in the bundle, built in partnership with Citizens’ Advice, showed that it could halve the amount of time it takes call handlers to give responses to complex questions on anything from consumer rights to legal support.
Technology Secretary Peter Kyle said: “There is a £45 billion jackpot to secure if we use technology properly across our public sector – but we can’t hope to come close to securing that if we don’t have the right technical talent with us in government.
“Not only will these changes help fix our public services, but it will save taxpayer cash by slashing the need for thousands of expensive contractors and create opportunities across the country across the country as part of our Plan for Change.”
Regulation will be cut back as Starmer sets out his latest steps to drive economic growth
Unnecessary regulation will be cut to boost growth that puts more money in working people’s pockets
Payment Systems Regulator abolished as part of efficiency drive
PM to set out how the Government is securing our future through the Plan for Change
Regulation will be cut back as the Prime Minister sets out his latest steps to drive economic growth that puts more money in working people’s pockets.
The Payment Systems Regulator (PSR) will be abolished as the latest step in reducing the burdens on business.
The Government will set out further steps to reduce red tape in the coming days.
A strong economy is at the heart of the Government’s plan to deliver security and renewal through the Plan for Change.
The PSR – which looks after payment systems like Faster Payments and Mastercard – will mainly be consolidated into the Financial Conduct Authority, making it easier for firms to deal with one port of call.
It follows complaints from businesses that the regulatory environment was too complex – with payment system firms having to engage with three different regulators, costing them time, money and resource.
This has a greater impact on smaller businesses that are trying to scale and grow – as the costs are disproportionately higher for them.
The Prime Minister wants to make regulation work for the UK – and this is the latest step in his drive to create an environment that will kickstart economic growth.
It is only by creating growth that people will see a genuine increase in their living standards – with higher wages and more money in their pocket at the end of the month.
Prime Minister, Keir Starmer said: “For too long, the previous Government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country.
“And it has been working people who pay the price of this stagnation.
“This is the latest step in our efforts to kickstart economic growth, which is the only way we can fundamentally drive-up living standards and get more money in people’s pockets.
“That’s why it is the priority in the Plan for Change, and it’s why I’m not letting anything get in its way.”
Chancellor, Rachel Reeves, said: “The regulatory system has become burdensome to the point of choking off innovation, investment and growth.
“We will free businesses from that stranglehold, delivering on our Plan for Change to kickstart economic growth and put more money into working people’s pockets.”
This builds on the Government’s deregulatory agenda, which has already:
Lifted the onshore wind ban at the stroke of a pen
Introduced the Planning and Infrastructure Bill
Launched the root and branch review of the water sector
Set financial services regulators on a growth agenda
Set up a review of all environmental regulation
Yesterday’s announcement does not result in any immediate changes to the Payment Systems Regulator’s remit or ongoing programme of work. The regulator will continue to have access to its statutory powers until legislation is passed by Parliament to enact these changes.
In the interim period, the Payment Systems Regulator and the Financial Conduct Authority will work closely to deliver a smooth transition of responsibilities to ensure the market remains competitive.
The entire regulatory landscape will continue to be reviewed and finessed as part of a wider Government effort to kickstart economic growth and make regulators work for the country, rather than block progress.
This is the latest in a line of work to make regulators work for the country. It follows:
A speech from the Prime Minister at the International Investment Summit where he called on the regulatory regime to fit the modern age.
A letter from the Prime Minister, the Chancellor and the Business Secretary – calling on regulators to come up with at least five reforms each that will boost economic growth.
The Chancellor ‘hauling in‘ regulators in January to have these proposals scrutinised.
Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return
Easier access to tax relief on temporarily imported fine art and antiques often shown in galleries and exhibitions announced, boosting the sector’s international competitiveness.
UK’s tax minister expected to announce these alongside a raft of other measures to help HMRC deliver Plan for Change through securing tax revenue and creating the conditions for growth in speech later today (11 March)
Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today.
This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.
As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.
This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth.
This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change.
Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants for England and Wales in a speech to mark the 20th anniversary of HMRC.
He will also detail future simplifications to the government’s Temporary Admission customs procedure, to make this relief for temporary imports easier for a range of sectors to use, including art and antiques, often showcased in exhibitions across the UK.
A new digital pilot with the United States to test ways to speed up trade processes for U.S. and UK businesses is also expected to be announced. This pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and secure real-time data transfers. It will look to make it easier and quicker for businesses to request trade benefits from each country.
Minister Murray will also update on the work HMRC is doing to tackle phoenixism – where company directors go insolvent to avoid tax – as well as announcing a new reward scheme to encourage informants to come forward to HMRC about tax fraud.
Exchequer Secretary to the Treasury James Murray said: “From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.
“Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.
“We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.”
Improving HMRC customer services
Since taking office, Murray has been taking teams of senior HMRC officials to meet firms including NatWest, Octopus Energy, Barclays, John Lewis, and Centrica to learn best practice and innovative approaches to modernising and digiting customer service from the private sector.
This includes the use of generative AI and ‘test and learn’ approaches to improving customer service. HMRC is trialling the use of generative AI to point taxpayers to the advice they need on GOV.UK.
In line with practice from banks and other private sector businesses, Murray will announce that HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely.
Following an evaluation of the trial, it is expected to be rolled out across HMRC over the rest of this year. Voice Biometrics strengthen security, safeguard customer data, and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre.
As reforms got underway to automate and digitise its services, HMRC met its target of 85 per cent of calls handled between October and December 2024 and is expected to meet its customer service standards in 2025-26.
As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.
Closing the Tax Gap – phoenixism and informants
Since becoming chair of HMRC’s board last year, Exchequer Secretary James Murray has steered the UK tax authority to go further and faster to close the tax gap, in order to raise the revenue required to fund public services and investment projects.
Following the Autumn Budget’s announcement of future work to tackle phoenixism – where rogue directors avoid payment of company tax by going insolvent – Mr Murray will update on the work in his speech. He will lay out how HMRC and the Insolvency Service have agreed a joint plan, which includes an increase to the use of securities, where HMRC asks for upfront payment of tax from new companies, making more rogue directors personally liable for the taxes of their company.
Murray will also announce a new reward scheme for informants to be launched later this year. This will look to target serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The scheme will take inspiration from the successful US and Canadian ‘whistleblower’ models and will complement the existing HMRC rewards scheme.
Informants could take home a significant amount of compensation. This will be equal to a proportion of the tax take, ensuring that the scheme raises more money that it costs. Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course.
At the Budget in October, the Chancellor announced an injection of over £1.5bn in HMRC to recruit and fund an additional 5,000 new compliance caseworkers and 1,800 debt collection officers. Minister Murray will announce in his speech that an additional 600 new compliance staff will start work this month. Investment in AI is expected to improve the targeting of compliance work and help make HMRC staff more productive.
This, alongside investment to modernise HMRC systems and legislation to tackle non-compliant tax avoidance and prevent non-compliance will raise £6.5bn per year by 2029/30.
This will help deliver the Plan for Change by securing tax revenue to help fund investment projects to boost growth.
Simplifying Tax Admin and Modernising HMRC
A simple and modern tax and customs system is vital to create the conditions to grow the economy.
Following the commitment in the Autumn to bring forward measures in the Spring to simplify the tax and customs system, the government will today go further to reduce the time businesses spend managing their tax, so they can focus on what matters most to them: growing and being productive.
The minister will announce a future digital pilot with U.S. Customs and Border Protection to test ways to speed up trade processes for UK and U.S. businesses. In 2024, UK-U.S. goods trade was worth a combined £115bn.
The aim is to make supply chains between UK and U.S. businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other. The pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and real-time data.
The pilot will include testing the ability to issue and share digital trusted trader credentials between UK and U.S. systems. This would speed up processes for trusted U.S. and UK businesses trading with each other including by making it more easy and efficient to request trade benefits from each country.
Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s Office of Trade said: “Modernizing trade processes is essential if we are going to keep pace with today’s trading environment.
“We are taking our operations to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility.”
James Murray will announce changes to simplify the tax system. The ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament, aligning with the new reporting thresholds for property and “other taxable” income.
This means that up to 300,000 taxpayers will not need to file a tax return. This ranges from people trading vintage clothes, dog-walking or gardening on the side, to driving a taxi or creating content online This will help cut waste, avoid unnecessary worry for customers and improve the conditions needed for them to grow.
Murray will also highlight simplifications to the customs regime to reduce burdens for traders. These include improvements to the Temporary Admission procedure, which relieves import duties for eligible goods that are imported temporarily. For example, the usual time limit for fine art and antiques will increase from 2 to 4 years.
Ellen Milner, Director of Public Policy, Chartered Institute of Taxation said:“We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade.
“A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their days overcoming bureaucratic hurdles.
“We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can be expanded to unrepresented taxpayers and to other taxes.”
