Rachel Reeves, the Shadow Chancellor of the Exchequer, caused quite a stir with her statement response to the government’s spending review. She focused more on the need for the funds awarded than those raised. During her speech, Ms. Rempel vehemently underscored this recent Conservative government neglect to keep our borders secure. She led the introduction of a rash of new policy initiatives aimed at restoring public services and infrastructure across the U.K.
In her announcement today, Reeves said that NHS funding would grow 3% each year. She announced the development of a ten-year plan to reinvigorate the National Health Service. This brave commitment goes hand-in-hand with her declaration that public health care will be one of the major focuses of the Labour Party.
Reeves announced his first major funding increase for the Border Security Command. From 2029 onwards, they will each get a share of £280 million a year guaranteed. This latest move is designed to further improve the government’s efficiency in clearing out their asylum and immigration backlogs. She promised to phase out the use of hotels for asylum seekers “in this parliament.”
Beyond health care, Reeves provided extra clarity with police funding, suggesting a 2.3% real-term increase. This appropriation is intended to assist local law enforcement agencies in their continued work to keep our communities safe. These included her announcement of a four-year funding settlement for Transport for London. She described this funding as pivotal to improving transport provisions throughout the entirety of the capital.
Appearing at a public event with other governors, Reeves attacked the federal government’s management of their fiscal policy. She highlighted the fact that the Conservative Party and Reform UK have both committed to £80 billion of unfunded spending pledges. This criticism was supported by Mel Stride, a Conservative MP, who referred to the spending review as “not worth the paper that it is written on.”
“This spending review is not worth the paper that it is written on, because the chancellor has completely lost control.” – Mel Stride
The Treasury released its spending round papers, detailing departmental budgets for several flagship initiatives. Among these 40 initiatives, Reeves mentioned that some projects would be up to £20 million funded. She also expressed support for two new carbon capture and storage projects: Acorn in Scotland and Viking in Humberside, which are crucial for meeting the UK’s environmental targets.
Reeves further comments drove home the negative effect of her proposed policies. She noted that it would be the only plan where the wealthiest 10% of households improve their financial fortunes. She stressed that the most disadvantaged groups of people—those who are poorest—would benefit the most relatively from these policy choices.
“On average, households in the lowest income deciles in 2028-29 will benefit the most from policy decisions as a percentage of net income.” – Stephen Millard
So it was surprising when some legislative leaders expressed skepticism about Reeves’s speech. From the outset of the presentation, Paul Johnson pointed out how complicated all these figures are. He argued that these figures masked the truth of spending increases in areas outside of the NHS. Yet as much as Reeves’ speech touted grand funding increases, Abdu said it wasn’t clear how sustainable those increases were, or in what areas they’ll be maintained.
“Not sure I’ve ever listened to a chancellorial speech so hard to work out what is happening.” – Paul Johnson
London’s Mayor, Sadiq Khan, applauded the new government’s commitment of additional transport and housing resources. One area where he was disappointed was with possible deficits in police funding. He underscored the need for investment in infrastructure projects, such as extending the Docklands Light Railway, to support economic growth and housing needs in London.
“However, I remain concerned that this spending review could result in insufficient funding for the Met and fewer police officers.” – Sadiq Khan
In her closing statement, Reeves passionately demanded order, not disorder. She played up her clear commitment to national investment and renewal. She pitched her plans as alternatives – defining Labour’s ideals of a fairer, more equal society.
“I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investments.” – Rachel Reeves
Reeves additionally announced an overhaul of the Treasury’s so-called green book rules to allow for more investment in poorer areas, particularly outside London. This change is intended to encourage more community development and give communities more power to create the change they want to see in their neighborhoods.
The political landscape could be very difficult for any government seeking to avoid leadership of an opposition with growing fiscal and economic policy concerns. With general elections on the horizon, Reeves’s announcements may play a pivotal role in shaping public perception and voter sentiment toward Labour’s approach to governance.