Electricity bills to be slashed for over 7,000 businesses in major industry shake-up

POWERING BRITAIN’S FUTURE

Industrial Strategy sets out a ten-year plan to boost investment, create good skilled jobs and make Britain the best place to do business

  • Electricity costs for thousands of businesses to be slashed by up to 25%.
  • New Industrial Strategy to unlock billions in investment and support 1.1 million new well-paid jobs over the next decade.
  • Strategy developed in partnership with business, marking a new era of collaboration between government and high growth industries.
  • Strategy will make the UK the best country to invest in and grow a business, delivering on the Plan for Change.

More than 7,000 British businesses are set to see their electricity bills slashed by up to 25% from 2027, as the Government unveils its bold new Industrial Strategy today [Monday 23 June].

The modern Industrial Strategy sets out a ten-year plan to boost investment, create good skilled jobs and make Britain the best place to do business by tackling two of the biggest barriers facing UK industry – high electricity prices and long waits for grid connections.

British manufacturers currently pay some of the highest electricity prices in the developed world while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid.

For too long these challenges have held back growth and made it harder for British firms to compete. Today’s announcement marks a decisive shift — with government stepping in to support industry and unlock the UK’s economic potential.

From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals.

These firms, which support over 300,000 skilled jobs, will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market — helping level the playing field and make them more internationally competitive. Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly.

The government is also increasing support for the most energy-intensive firms — like steel, chemicals, and glass — by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. These businesses currently get a 60% discount on those charges, but from 2026, that will increase to 90%. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future.

This will help around 500 eligible businesses in sectors such as steel, ceramics and glass reduce their costs and protect jobs in industries that are the backbone of our economy and will be delivered at no additional cost to the taxpayer.

These reforms complement the government’s long-term mission for clean power, which is the only way to bring down bills for good by ending the UK’s dependency on volatile fossil fuel markets.

To ensure businesses can grow and hire without delay, the government will also deliver a new Connections Accelerator Service to streamline grid access for major investment projects — including prioritising those that create high-quality jobs and deliver significant economic benefits.

The government will work closely with the energy sector, local authorities, Welsh and Scottish Governments, trade unions, and industry to design this service, which we expect to begin operating at the end of 2025. New powers in the Planning and Infrastructure Bill, currently before parliament, could also allow the Government to reserve grid capacity for strategically important projects, cutting waiting times and unlocking growth in key sectors.

The Industrial Strategy is a 10-year plan to promote business investment and growth and make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create 1.1 million good, well-paid jobs in thriving industries – delivering on this government’s Plan for Change.

Prime Minister Keir Starmer said: “This Industrial Strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.

“In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people’s pockets as part of the plan for change.

“This is how we power Britain’s future – by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear – Britain is back and open for business.”

Chancellor of the Exchequer Rachel Reeves said: ” The UK has some of the most innovative businesses in the world and our Plan for Change has provided them with the stability they need to grow and for more to be created.

“Today’s Industrial Strategy builds on that progress with a ten-year plan to slash barriers to investment. It’ll see billions of pounds for investment and cutting-edge tech, ease energy costs, and upskill the nation. It will ensure the industries that make Britain great can thrive. It will boost our economy and create jobs that put more money in people’s pockets.”

Business and Trade Secretary Jonathan Reynolds said: “We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people.

“Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people’s pockets and pays for our NHS, schools and military.

“Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial electricity prices more competitive.

“Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened, and now we’re taking the bold action needed. Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver.”

Energy Secretary Ed Miliband said: “For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.

“As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors.

“We’re also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear. This will deliver on our clean power mission and Plan for Change to bring down bills for households and businesses for good.”

The Supercharger and British Industrial Competitiveness Scheme will be funded through reforms to the energy system. The government is reducing costs within the system to free up funding without raising household bills or taxes and intends to also use additional funds from the strengthening of UK carbon pricing, including as a result of linking with the EU carbon market.

We have set out an intention to link emissions trading systems, as part of our new agreement with the European Union to support British businesses. Without an agreement to do this, British industry would have to pay the EU’s carbon tax.

We intend to link our carbon pricing system with the EU’s, we will ensure that money stays in the UK—which allows us to support British companies and British jobs through these schemes.

Building on the Spending Review and the recently announced 10-Year Infrastructure Strategy, the Industrial Strategy is the latest step forward in our plans to deliver national renewal. It will include targeted support for the areas of the country and economy that have the greatest potential to grow, while introducing reforms that will make it easier for all businesses to get ahead.

The Strategy’s bold plan of action includes:

  • Slash electricity costs by up to 25% from 2027 for electricity-intensive manufacturers in our growth sectors and foundational industries in their supply chain, bringing costs more closely in line with other major economies in Europe.
  • Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank financial capacity to £25.6 billion, crowding in tens of billions of pounds more in private capital. The includes an additional £4bn for Industrial Strategy Sectors, crowding in billions more in private capital. By investing largely through venture funds, the BBB will back the UK’s most high-growth potential companies.
  • Upskilling the nation with an extra £1.2 billion each year for skills by 2028-29, and delivering more opportunities to learn and earn in our high-growth sectors including new short courses in relevant skills funded by the Growth and Skills Levy and skills packages targeted at defence digital and engineering.
  • Reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators. 
  • Supporting 5,500 more SMEs to adopt new technology through the Made Smarter programme while centralising government support in one place through the Business Growth Service.
  • Boosting R&D spending to £22.6bn per year by 2029-30 to drive innovation across the IS-8, with more than £2bn for AI over the Spending Review, and £2.8bn for advanced manufacturing over the next ten years. This will leverage in billions more from private investors. Regulatory changes will further clear the path for fast-growing industries and innovative products such as biotechnology, AI, and autonomous vehicles.
  • Attracting elite global talent to our key sectors, via visa and migration reforms and the new Global Talent Taskforce.
  • Deepening economic and industrial collaboration with our partners, building on our Industrial Strategy Partnership with Japan and recent deals with the US, India, and the EU.
  • Reducing planning timelines and cutting costs for developers, by hiring more planners, streamlining pre-application requirements and combining environmental obligations, removing burdens on businesses as well as accelerating house building. 
  • Revolutionising public procurement and reducing barriers for new entrants and SMEs to bolster domestic competitiveness.
  • Supporting the UK’s city regions and clusters by increasing the supply of investible sites through a new £600m Strategic Sites Accelerator, enhanced regional support from the Office for Investment, National Wealth Fund, and British Business Bank, and more.

The plan focuses on 8 sectors where the UK is already strong and there’s potential for faster growth: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Each growth sector has a bespoke 10-year plan that will attract investment, enable growth and create high-quality, well-paid jobs.

Dame Clare Barclay DBE, Chair of the Industrial Strategy Advisory Council and President of Enterprise & Industry EMEA at Microsoft said: “I welcome today’s Industrial Strategy, which sets out a clear plan to back the UK’s growth driving sectors.

” It is particularly positive to see the strong focus on skills in areas such as engineering, technology and defence. Commitments such as £187 million for the TechFirst programme will ensure the UK has the skills it needs to support our growth industries and seize transformative opportunities like AI.”

Rain Newton-Smith, Chief Executive, CBI said: “Today’s Industrial Strategy announcement is a significant leap forward in the partnership between government and business that sets us on the path to our shared goal of raising living standards across the country.  

“It sends an unambiguous, positive signal about the nation’s global calling card as well as the direction of travel for the wider economy for the next decade and beyond.

“The CBI has long been advocating for a comprehensive industrial strategy, based on the UK’s USP – the sectors and markets where we can compete to win on the global stage.

“More competitive energy prices, fast-tracked planning decisions and backing innovation will provide a bedrock for growth. But the global race to attract investment will require a laser-like and unwavering focus on the UK’s overall competitiveness. 

“Today marks the beginning of delivering this strategy in close partnership, at pace, and with a shared purpose.”

Stephen Phipson CBE, CEO at Make UK said: “British industry has been in desperate need for a government who understands our sector and had the strategic vision for a plan for growth.

“Today’s Industrial Strategy is a giant and much needed step forward taken by the Secretary of State who has seen the potential and provided the keys to help unlock it.

“Make UK has led the campaign for a new industrial strategy for many years, highlighting the three major challenges that were diminishing our competitiveness, hampering growth and frustrating productivity gains: a skills crisis, crippling energy costs and, an inability to access capital for new British innovators.

“The strategy announced today sets out plans to address all three of these structural failings. Clearly there is much to do as we move towards implementation but, this will send a message across the Country and around the world that Britain is back in business.”

Tufan Erginbilgic, Rolls-Royce CEO, said: “The UK Government’s Industrial Strategy commitment to support our world-leading aerospace and nuclear industries shows long-term strategic foresight.

“Rolls-Royce’s highly differentiated technologies in gas turbines and nuclear capabilities- including SMRs and AMRs- are uniquely placed to deliver economic growth, skilled jobs and attract investment into the UK.”

Mike Hawes OBE, SMMT Chief Executive said: “The publication of an Industrial Strategy – one with automotive at its heart – is the policy framework the sector has long-sought and Government has now addressed.

“Such a strategy – long-term, aligned to a trade strategy and supported by all of Government – is the basis on which the UK automotive sector can regain its global competitiveness.

“Making the UK the best place to invest now depends on implementation, and implementation at pace, because investment decisions are being made now against a backdrop of fierce competition and geopolitical uncertainty.

“The number one priority must be addressing the UK’s high cost of energy, enabling the sector to invest in the technologies, the products and the people that will give the UK its competitive edge.”

Five sector plans have been published today:

  • Advanced Manufacturing – Backing our Advanced Manufacturing sector with up to £4.3 billion in funding, including up to £2.8 billion in R&D over the next five years, with the aim of anchoring supply chains in the UK – from increasing vehicle production to 1.35 million, to leading the next generation of technologies for zero emission flight.
  • Clean Energy Industries – Doubling investment in Clean Energy Industries by 2035, with Great British Energy helping to build the clean power revolution in Britain with a further £700 million in clean energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to £1 billion.
  • Creative Industries – Maximizing the value of our Creative Industries through a £380 million boost for film and TV, video games, advertising and marketing, music and visual and performing arts will improve access to finance for scale-ups and increase R&D, skills and exports.
  • Digital and Technologies – Making the UK the European leader for creating and scaling Digital and Technology businesses, with more than £2 billion to drive the AI Action Plan, including a new Sovereign AI Programme, £187 million for training one million young people in tech skills and targeting R&D investment at frontier technologies such as cyber security in Northern Ireland, semiconductors in Wales and quantum technologies in Scotland. 
  • Professional and Business Services – Ensuring our Professional and Business Services becomes the world’s most trusted adviser to global industry, revolutionising the sector across the world through adoption of UK-grown AI and working to secure mutual recognition of professional qualifications agreements overseas.  

Dark day for the world as loose cannon Trump bombs Iran

TWO WEEKS? HE COULDN’T WAIT TWO DAYS TO ATTACK IRAN

The United States of America has bombed three nuclear sites in Iran.

The overnight attack by ‘our great American Warriors’ has been welcomed by Israel, who initiated the latest conflict with Iran last week.

US President Trump, without a trace of irony, is now calling for peace!

Also calling for peace, but perhaps with more sincerity, is the United Nations – which has once again been found to be impotent when faced with international agression by major military powers.

United Nations general secretary António Guterres said in a statement: “I am gravely alarmed by the use of force by the United States against Iran today. This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security.

“There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world.

“I call on Member States to de-escalate and to uphold their obligations under the UN Charter and other rules of international law.

“At this perilous hour, it is critical to avoid a spiral of chaos.

“There is no military solution. The only path forward is diplomacy. The only hope is peace.”

Some US politicians have also expressed concern that Congress was not consulted over the agression.

Congresswoman Rashida Tlaib said on Twitter: “President Trump sending U.S. troops to bomb Iran without the consent of Congress is a blatant violation of our Constitution.

World leaders, including Great Britain, with our so-called ‘special relationship’, will doubtless call for restraint and urge negotiations this morning, but let’s be honest: Trump, and by association Netanyahu, will do exactly what he wants. And who can stop him?

Predictably, the UK did not condemn the actions of the US.

Prime Minister Keir Starmer issued this short statement: “Iran’s nuclear programme is a grave threat to international security. Iran can never be allowed to develop a nuclear weapon and the US has taken action to alleviate that threat.

“The situation in the Middle East remains volatile and stability in the region is a priority. We call on Iran to return to the negotiating table and reach a diplomatic solution to end this crisis.”

‘Game changer’ for the nation?

£900 million investment in major sporting events and grassroots sport

  • Major sporting events and grassroots sport across the UK to benefit from over £900 million in funding, as part of government’s Plan for Change 
  • More than £500 million to support delivery of world class major sporting events hosted in the UK, including UEFA EURO 2028, Tour de France and Tour de France Femmes Grand Départs 2027 
  • At least £400 million to be invested in new and upgraded grassroots sport facilities in communities across the country

Villages, towns and cities across the UK are set to benefit from a transformational investment of more than £900 million in sport, which will support a pipeline of major international events and deliver new grassroots facilities that can drive economic growth and inspire people of all ages to get active. 

The funding commitment, which was outlined in the Spending Review last week, has now been set out by Culture Secretary Lisa Nandy. 

It will see more than £500 million committed to supporting the delivery of a host of world class sporting events being held in the UK over the coming years, including:

  • The men’s and women’s Tour de France Grand Départs in 2027
  • Men’s UEFA EURO 2028 – alongside Ireland
  • The European Athletics Championships 2026 in Birmingham

These events are expected to deliver significant economic benefits, with EURO 2028 alone projected to generate up to £2.4 billion in socio-economic value across the UK. 

Work is also continuing with the Home Nation football associations (FA)s and devolved administrations to develop the bid for the UK to host the Women’s FIFA World Cup in 2035. 

In tandem at least £400 million will be invested in new and upgraded grassroots sport facilities that promote health, wellbeing and community cohesion. Work to remove the barriers to physical activity for under-represented groups, such as women and girls, people with disabilities, and ethnic minority communities will continue. 

Already, government funding has helped local clubs from Ayrshire to Anglesey, Strangford to Somerset, build new pitches and changing rooms, install floodlights, solar panels and goalposts; supporting a range of sports including football and rugby.  

Together, this strategic investment in sport will help to deliver on the government’s mission to kickstart economic growth by creating jobs, driving regional prosperity and encouraging visitors to the UK.

It is also designed to reduce barriers to opportunity, bring communities together through shared national moments and showcase the best of the UK to the world. 

Secretary of State for Culture, Media and Sport, Lisa Nandy, said: “Sport tells our national story in a way few other things can – uniting communities, inspiring millions, and showcasing our nation on the global stage.

“This major backing for world-class events will drive economic growth across the country, delivering on our Plan for Change. Coupled with strong investment into grassroots sport, we’re creating a complete pathway to allow the next generation of sporting heroes to train and take part in sport in communities across the UK.”

This investment is central to the government’s commitment to delivering major sporting events with pride and impact and stands alongside ongoing work with partners in the sport sector and across the UK.

The pipeline of major events already secured includes this Summer’s Women’s Rugby World Cup in England, the Glasgow Commonwealth Games 2026, the ICC T20 Cricket women’s and men’s World Cups (in 2026 and 2030 respectively), the Invictus Games 2027 in Birmingham, and many other elite continental and world championships. 

Debbie Hewitt MBE, Chair of the UK and Ireland 2028 Board, said: “We welcome today’s announcement of significant investment in sport from the UK government, which marks a major boost to the successful delivery of UEFA EURO 2028.

“This commitment will not only help us stage a world-class tournament but also ensure that communities across the UK feel long-lasting benefits – from enhanced grassroots facilities to stronger local economies. 

“UEFA EURO 2028 is a once-in-a-generation opportunity and with this investment, we are better placed than ever to deliver an event with pride, purpose and impact.”

Nick Webborn, Chair of UK Sport, said: “We welcome the government’s ongoing commitment to hosting the Tour De France, Tour De France Femmes and Euro 2028. These events have huge potential to drive economic growth, bring people together and inspire the next generation in communities across the UK. 

“We believe that live sport is a fundamental part of this country’s social fabric. We are really excited to be working with the government and support their commitment to secure the pipeline of big events beyond 2028 to ensure we can continue to reach, inspire and unite people in every corner of the country.”

Chair of Sport England, Chris Boardman said: “The government’s continued investment into grassroots sport facilities is welcome news; the nation’s pitches, pools and leisure centres play a pivotal role in keeping people moving.

“With every £1 invested in community sport and physical activity generating £4.20 in value for our economy, supporting grassroots facilities isn’t just good for public health — it’s a smart investment in the nation’s social and economic wellbeing.”

Welfare bill ‘will protect the most vulnerable and help households with income boost’

TRUSSELL: The new Universal Credit and PIP bill will push nearly HALF A MILLION more people into severe hardship and towards the doors of food banks

Additional protections for millions of vulnerable people on benefits are set to be written into law, under new measures being introduced to Parliament yesterday [18 June 2025].

  • New welfare legislation to ensure there are robust protections in place to support the most vulnerable and severely disabled.
  • Nearly 4 million households to benefit from uprating of Universal Credit standard rate, the largest, permanent real-terms increase to basic out of work support since 1980, according to the IFS.
  • More than 200,000 people with most severe, lifelong conditions to be protected from future reassessment for Universal Credit entitlement.
  • 13-week period of financial support for those affected by PIP changes as part of upcoming welfare reforms.
  • Comes alongside £1 billion employment support package that will unlock opportunity and grow the economy as part of the Plan for Change.

The Universal Credit and Personal Independence Payment Bill will provide 13-weeks of additional financial security to existing claimants affected by changes to the PIP daily living component, including those who their lose eligibility to Carers Allowance and the carer’s element of Universal Credit, according to the UK government – but charity Trussell says the bill will push nearly HALF A MILLION more people into severe hardship.

The 13-week additional protection will give people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends.

This transitional cover is one of the most generous ever and more than three times the length of protection provided for the transition from DLA to PIP.

The Labour government says it inherited a broken social security system, with costs spiralling at an unsustainable rate and millions of people trapped out of work. The case for change is stark:

  • Since the pandemic, the number of PIP awards has more than doubled – up from 13,000 a month to 34,000 a month. That is around 1,000 people signing on to PIP every day – that is roughly the size of Leicester signing up every year.
  • The surge has been largely by driven by a substantial increase in the number of people who report anxiety and depression as their main condition. Before the pandemic (in 2019), 2,500 people a month were awarded PIP for these conditions, this has more than tripled to 8,200 a month in 2023.
  • Almost 1 million young people – 1 in 8 – are not in education, employment or training.
  • 1-in-10 people of working age are now claiming a sickness or disability benefit.
  • Without reform, the number of working age people on disability benefits is set to more than double this decade to 4.3 million.
  • Spending on working age disability and incapacity benefits is up £20 billion since the pandemic and is set to increase by almost that much again by the end of this Parliament, to a staggering £70 billion a year.

Labour says that’s why, through the introduction of this Bill; the government is fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.

Work and Pensions Secretary Liz Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.

“This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.

“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”

As part of our (i.e. the Westminster govertnment’s) commitment to protect the most vulnerable and severely disabled, peace of mind will also be given to 200,000 individuals in the Severe Conditions Criteria group – individuals with the most severe and permanently disabling conditions who will never be able to work – as they will not be called for reassessed for Universal Credit (UC) under new legislation.

Those protected from reassessment will also be paid the higher rate of UC health top up of £97 per week, so they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.

In the coming weeks, legislation will also be drafted for a Right to Try Guarantee. This will ensure that trying work will not, in and of itself, lead to a reassessment or award review, breaking down barriers to employment.

Reforms being delivered by the legislation introduced today go hand in hand with a £1 billion employment support package to support more people with health conditions back into work, unlocking opportunity and growing the economy as part of the Plan for Change.

Funding will offer personalised employment and health support for individuals on out of work benefits, with 500,000 people having already been supported into employment. This is a quadrupling the level of annual spend on supporting sick and disabled people into work, from the £275m in 2024/25 we inherited, to over £1bn in 2029/30.

Nearly 4 million households will also receive an income boost with the main rate of Universal Credit set to increase above inflation every year for the next four years – estimated to be worth £725 by 2029/30 for a single household 25 or over. This is around £250 higher than an inflation only increases.

The Bill will also rebalance Universal Credit rates by reducing the health element for new UC claims to £50 from April 2026, fixing a system which encourages sickness by paying health element recipients more than double the standard amount.

To open up opportunities to work, everyone affected by changes to the UC health element from April 2026 will be offered support from a dedicated Pathways to Work adviser, with 1,000 advisers in place across Britain.

All of those affected by reforms will be actively contacted and given the offer of a conversation about their support needs, goals and aspirations; offered one-to-one follow-on support, and given help to access additional work, health and skills support that can meet their needs.

The reforms build on the Get Britain Working White Paper that will overhaul Jobcentres, empower Mayors and local leaders to tackle inactivity, and deliver a Youth Guarantee so every young person is either earning or learning, as part of the Government’s ambition to deliver an 80% employment rate.

Additional information

  • The Bill will introduce a new additional eligibility requirement for the daily living component of PIP so that a minimum of 4 points must be scored on at least one daily living activity to be eligible for the daily living component. It will also rebalance Universal Credit.
  • The Work and Pensions Secretary gave a speech at the IPPR on setting out the case for reforming the welfare system: Welfare reform: Speech to the IPPR by Work and Pensions Secretary – GOV.UK
  • Based on current forecasts, the rebalancing mean single households 25 or over, will see their standard allowance rise to around £106pw by the end of this parliament.
  • Current UC health top up is more than double the UC standard allowance for a single claimant.

There are 4 criteria for the healthcare professional to consider, all of which must apply for the claimant to meet the SCC, namely whether:

  • The individual’s level of function will always meet LCWRA
  • The individual’s condition will last for the rest of their life
  • There is no realistic prospect of recovery of function, and
  • The condition has been diagnosed by an appropriately qualified healthcare professional in the course of the provision of NHS services.

Scotland’s Social Justice Secretary: “Scrap damaging welfare reforms”

Social Justice Secretary Shirley-Anne Somerville has urged the UK Government to protect and enhance social security rather than making cuts.

The UK Government’s Universal Credit and Personal Independence Payment Bill has been published today, which includes the details of the first set of changes to ill-health and disability benefits. The Scottish Government will not mirror the Personal Independence Payment (PIP) changes in Adult Disability Payment in Scotland.

Social Justice Secretary Shirley-Anne Somerville said: “The UK Government’s proposed reforms will be hugely damaging to those who rely on social security support, particularly during the ongoing cost of living crisis.

“These plans have yet to be passed at Westminster, so there is still time for the UK Government to step back from this damaging policy and I strongly urge them to scrap their harmful proposals.

“The UK Government’s own analysis highlights how the proposals will push 250,000 more people across the UK into poverty – including 50,000 children. With around half of all children in poverty in Scotland living in a household with a disabled person, the changes threaten to undermine the progress that we are making to reduce child poverty, and the work of the UK Government’s Child Poverty Taskforce.

“That the UK Government is prioritising deep cuts to disabled people’s support is made even worse by their failure to abolish the two-child limit, which is estimated to have pushed more than 35,000 children into poverty since July last year.

“The reforms do not reflect the Scottish Government’s values. We will not let disabled people down or cast them aside as the UK Government has done. We will not cut Scotland’s Adult Disability Payment.

“The UK Government should follow our lead and protect the social security safety system, rather than dismantling it. If they do not, then disabled people can draw no other conclusion than the UK Government remain content to balance the books on the backs of the most vulnerable.”

Responding to the publication of the bill, Helen Barnard, Director of policy at Trussell said: “The UK government’s new Universal Credit and PIP bill, put before Parliament today, does almost nothing to ease the concerns of hundreds of the thousands of disabled people who fear that their social security support will be ripped from them.

“In fact, this bill will push nearly half a million more people into severe hardship and towards the doors of food banks.

“It is easy to see why so many MPs have voiced concerns about the damage this bill will do. What has been published today offers little for MPs deeply concerned about the impact of these cuts on their constituents.

“The last minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. The reality of this bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.

“It is shocking that MPs are being asked to vote through cuts without a full assessment of their impact, and especially worrying as we know that already three in four people referred to the Trussell community are disabled or live with someone who is.

“We know hunger and hardship already pushes up public service costs alone by £13.7 billion. MPs are being asked to vote for a Bill that will drive up hunger and hardship and undermine the UK government’s promises on economic growth and ending the need for emergency food.”

Today, the UK government published a bill, aimed at reforming the benefits system. Unfortunately, as it stands, this will be a disaster for disabled people – and is likely to worsen people’s living conditions, undermine their mental health, and increase the risk of suicide, says Mental Health Foundation.

These plans will not help reduce the number of disabled people out of work. Instead, they are counterproductive and cruel.

A more effective alternative for the government would be to move forward with its progressive policies that encourage people to return to work, such as the Right to Try scheme and improvements to support in job centres, and look at how well those work, without cutting support for disabled people.

Grooming Gangs: Home Secretary updates Westminster

‘WORDS ARE NOT ENOUGH. VICTIMS AND SURVIVORS NEED ACTION’

Home Secretary Yvette Cooper has updated the House of Commons on the National Audit on Group-based Child Sexual Exploitation and Abuse (‘grooming gangs’) carried out by Baroness Casey:

Mr Speaker, with your permission, I will update the House on the audit the government commissioned from Baroness Casey on child sexual exploitation and grooming gangs, and on the action we are taking to tackle this vile crime – to put perpetrators behind bars, and to provide the innocent victims of those crimes with support and justice.

The House will be aware that on Friday, 7 men were found guilty of the most horrendous crimes in Rochdale between 2000 and 2006.

They were convicted of treating teenage girls as sex slaves – repeatedly raping them in filthy flats, alleyways and warehouses. The perpetrators included taxi drivers and market traders of Pakistani heritage, and it has taken 20 years to bring them to justice.

I want to pay tribute to the incredible bravery of the women who told their stories and have fought for justice through all those years. They should never have been let down for so long.

The sexual exploitation of children by grooming gangs is one of the most horrific crimes.

Children as young as 10 plied with drugs and alcohol, brutally raped by gangs of men and disgracefully let down again and again by the authorities who were meant to protect them and keep them safe.

These despicable crimes have caused the most unimaginable harm to victims and survivors throughout their lives and are a stain on our society.

Five months ago, I told the House our most important task was to stop perpetrators and put them behind bars.

I can report that that work is accelerating.

Arrests and investigations are increasing.

After I asked police forces in January to identify cases involving grooming and child sexual exploitation allegations that had been closed with no further action, more than 800 cases have now been identified for formal review.

And I expect that figure to rise above 1,000 in the coming weeks.

Let me be clear. Perpetrators of these vile crimes should be off our streets, behind bars and paying the price for what they have done.

Further rapid action is also under way to finally implement recommendations of past inquiries and reviews – including the 7-year Independent Inquiry into Child Abuse – recommendations which for too long have sat on the shelf.

So in the Crime and Policing Bill, we are introducing:

The long overdue mandatory reporting duty which I called for more than 10 years ago.

As well as aggravated offences for grooming offenders so their sentences match the severity of their crimes.

And earlier this year, I also commissioned Baroness Louise Casey to undertake a rapid national audit of the nature, scale and characteristics of gang-based exploitation.

I specifically asked her to look at the issue of ethnicity, and the cultural and social drivers for this type of offending – analysis that had never previously been done despite years of concerns being raised.

And I asked her to advise us on what further reviews, investigations and actions would be needed to address the current and historical failures that she found.

I told Parliament in January that I expected Baroness Casey to deliver the same kind of impactful and no-holds-barred report that she produced on Rotherham in 2015 so we never shy away from the reality of these terrible crimes.  

And I am very grateful to Louise and her team that they have done exactly that, with a hugely wide-ranging assessment conducted in just 4 months.

THE FINDINGS OF HER AUDIT ARE DAMNING.

At its heart she identifies a deep-rooted failure to treat children as children. A continued failure to protect children and teenage girls from rape, from exploitation, and serious violence. And from the scars that last a lifetime.

She finds too much fragmentation in the authorities’ response, too little sharing of information, too much reliance on flawed data, too much denial, too little justice, too many criminals getting off, too many victims being let down.

The audit describes;

  • victims as young as 10 – often those in care, or children with learning or physical disabilities – being singled out for grooming precisely because of their vulnerability
  • perpetrators still walking free because no one joined the dots or because the law ended up protecting them instead of the victims that they had exploited
  • deep rooted institutional failures, stretching back decades, where organisations who should have protected children and punished offenders looked the other way – and Baroness Casey found “blindness, ignorance, prejudice, defensiveness and even good but misdirected intentions” all played a part in this collective failure

But on the key issues of ethnicity that I had asked her to examine, she has found continued failure to gather proper robust national data, despite concerns being raised going back very many years. In the local data that the audit examined from 3 police forces they identify clear evidence of over-representation among suspects of Asian and Pakistani-heritage men.

And she refers to “examples of organisations avoiding the topic altogether for fear of appearing racist or raising community tensions”.

Mr Speaker, these findings are deeply disturbing. But most disturbing of all, as Baroness Casey makes clear, is the fact that too many of these findings are not new.

As her audit sets out, there have been 15 years of reports, reviews, inquiries and investigations into these appalling rapes, exploitation and violent crimes against children – detailed over 17 pages in her report – but too little has changed.

We have lost more than a decade. That must end now.

Baroness Casey sets out 12 recommendations for change. We will take action on all of them immediately.

Because we cannot afford more wasted years so we will introduce:

  • new laws to protect children and support victims so they stop being blamed for the appalling crimes committed against them
  • new major police operations to pursue perpetrators and put them behind bars
  • a new national inquiry to direct local investigations and hold institutions to account for past failures
  • new ethnicity data and research so we face up to the facts on exploitation and abuse
  • new action across children’s services and other agencies to identify children at risk
  • and further action to support child victims and tackle new forms of exploitation and abuse online

Taken together, this will mark the biggest programme of work ever pursued to root out the scourge of grooming gangs and child sexual exploitation.

Those vile perpetrators who have grown used to the authorities looking the other way must have no place to hide.

So let me spell out the next steps we are announcing today.

Baroness Casey’s first recommendation is that we must see children as children.

She concludes that too many grooming cases have been dropped or downgraded from rape to lesser charges because a 13 to 15-year-old is perceived to have been ‘in love with’ or ‘had consented to’ sex with the perpetrator.

So we will change the law to ensure that adults who engage in penetrative sex with a child under 16 face the most serious charge of rape, and we will work closely with the CPS [Crown Prosecution Service] and the police to ensure there are safeguards for consensual teenage relationships.

And we will change the law so that those convicted for child prostitution offences while their rapists got off scot-free will have their convictions disregarded and their criminal records expunged.

Baroness Casey’s next recommendation is a national criminal operation.

As I have set out, arrests and investigations are rising.

But the audit recommends us going further

So I can announce that the police will launch a new national criminal operation into grooming gangs, overseen by the National Crime Agency bringing together for the first time all arms of the policing response and will develop a rigorous new national operating model which all forces across the country will be able to adopt.

Ensuring grooming gangs are always treated as serious and organised crime.

So rapists who groom children whether their crimes were committed decades ago or are still being committed today can end up behind bars.

But alongside justice there must also be accountability and action.

We have begun implementing the recommendations from inquiries past, including Professor Jay’s Independent Inquiry.

And we have said that further inquiries are needed to get accountability in local areas.

I told the House in January I would undertake further work to look at how to ensure those inquiries could get the evidence they needed to properly hold institutions to account and we have sought responses from local councils too.

We asked Baroness Casey to review those responses, as well as the arrangements and powers that had been used in past investigations and inquiries, to consider the best means to get to the truth.

Her report concludes that further local investigations are needed but that they should be directed and overseen by a national commission with statutory inquiry powers.

We agree. And we will set up a national inquiry to that effect.

Baroness Casey is not recommending another over-arching inquiry of the kind conducted by Professor Alexis Jay and she recommends that the inquiry should be time limited.

But its purpose must be to challenge what the audit describes as continued denial, resistance and legal wrangling among local agencies, and we will set out the further details on the national inquiry in due course.

Mr Speaker, I warned in January that the data collection we had inherited from the previous government on ethnicity was completely inadequate. That data was only collected on 37% of suspects.

Baroness Casey’s audit confirms that ethnicity data is not recorded for two-thirds of grooming gang perpetrators – and she says it is “not good enough to support any statements about the ethnicity of group-based child sexual exploitation offenders at the national level”. I agree with that conclusion. 

Frankly it is ridiculous and helps no one that this basic information is not collected – especially when there have been warnings and recommendations stretching back 13 years about the woefully inadequate data on perpetrators which prevents patterns of crime being understood and tackled.

The immediate changes I announced in January to police recording practices are starting to improve the data, but we will need to go much further.

Baroness Casey’s audit examined local level data in 3 police force areas. Greater Manchester, West Yorkshire and South Yorkshire where high profile cases involving Pakistani-heritage men have long been investigated and reported – and there they found the suspects of group-based child sexual offences were disproportionately likely to be Asian men.

She also found indications of disproportionality in serious case reviews.

While much more robust national data is needed, we cannot and must not shy away from these findings. Because as Baroness Casey says: “ignoring the issues, not examining and exposing them to the light, allows the criminality and depravity of a minority of men to be used to marginalise whole communities.”

The vast majority of people in our British Asian and Pakistani heritage communities continue to be appalled by these terrible crimes and they agree that the criminal minority of sick predators and perpetrators in every community must be dealt with robustly by the criminal law.

Baroness Casey’s review also identifies prosecutions and investigations into perpetrators who are White British, European, African or Middle Eastern, just as Alexis Jay’s Inquiry concluded that all ethnicities and communities were involved in appalling child abuse crimes.

So to provide accurate information to help tackle serious crimes we will make it a formal requirement for the first time to collect both ethnicity and nationality data for all cases of child sexual abuse and exploitation.

And we will commission new research into the cultural and social drivers of child sexual exploitation, misogyny and violence against women and girls, as Baroness Casey has recommended.

The final group of recommendations from the audit is about the continued failure of agencies that should be keeping children safe to share vital information or act on clear signs of risk.

Worryingly the audit finds that whilst reports of child sexual abuse and exploitation to the police have gone up, the number of child sexual abuse cases identified for protection plans by local children’s services has fallen to its lowest ever level. But no one has been curious as to why

And the audit details an abysmal failure to respond to 15 years’ worth of recommendations and warnings about the failings of inter-agency co-operation.

So we will act at pace to deliver on Baroness Casey’s recommendations on mandatory sharing of information between agencies and on unique reference numbers for children, the work already being taken forward by my Right Honourable Friend the Education Secretary.

And my Right Honourable Friend the Transport Secretary will also work at pace to close loopholes in the law on taxi licensing.

Finally, I want to respond to 3 other important issues identified by Baroness Casey in her report but where she has not made specific recommendations.

On support for victims, my Right Honourable Friend the Health Secretary will fund additional training for mental health staff in schools on identifying and supporting children and young people who have experienced trauma, exploitation and abuse.

Secondly. Baroness Casey reports that she came across cases involving suspects who were asylum seekers. We have asked her team to provide to the Home Office all the evidence that they found, so that Immigration Enforcement can immediately pursue individual cases with the police.

But let me make clear. Those who groom children or commit sexual offences will not be granted asylum in the UK. We will do everything in our power to remove them. I do not believe the law is strong enough, that we have inherited, so we are bringing forward a change to the law, so that anyone convicted of sexual offences is excluded from the asylum system and denied refugee status.

We have already increased the removal of foreign national offenders by 14% since the election and we are drawing up new arrangements to identify and remove those who have committed a much wider range of offences.

Finally, Baroness Casey describes ways in which patterns of grooming gang child sexual exploitation are changing.

Including evidence of rape and sexual exploitation taking place in street gangs and drug gangs, that combine criminal and sexual exploitation.

I do not believe that this kind of exploitation has been sufficiently investigated.

It also describes sexual exploitation in modern slavery and trafficking cases.

And most significant of all it describes the huge increase in online grooming and horrendous sexual exploitation and abuse – including the use of social media apps to build up relationships and lure children into physical abuse.

The audit quotes one police expert saying, “If Rotherham were to happen again today it would start online.”

Mr Speaker, we are also passing world-leading new laws to target those who groom and exploit children online and investing in cutting edge technology to target the highest-harm offenders but we will need to do much more or the new scandals and shameful crimes of the future will be missed. 

When the final report of Alexis Jay’s 7-year national inquiry was published in October 2022, the then Home Secretary, Grant Shapps, issued a profound and formal public apology to the victims of child sexual abuse so badly let down over decades by different levels of the state.

As Shadow Home Secretary at that time I joined him in that apology on behalf of the Opposition and extended it to victims of child sexual exploitation too.

To the victims and survivors of sexual exploitation and grooming gangs, on behalf of this and past governments and the many public authorities who let you down, I want to reiterate an unequivocal apology for the unimaginable pain and suffering you have suffered and the failure of our country’s institutions through decades to prevent that harm and keep you safe.  

But words are not enough. Victims and survivors need action.

The reforms I have set out today will mean the strongest action any government has taken to tackle child sexual exploitation

More police investigations, more arrests, a new inquiry, changes to the law to protect children, and a fundamental overhaul of the way organisations work to support victims and put perpetrators behind bars.

But none of this will work unless everyone is part of it. Unless everyone works together to keep our children safe.

I commend this statement to the House.

£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 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.  

 

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.