Expenses: Will Rachel Reeves spend the huge fiscal gambling elections dividends? | Expenses for 2025

Rachel Reeves played billions of pounds infrastructure spending “Renew the UK” Before the next elections, however, a fight for the conviction of the voters is faced that Labor can lead to changes in deep cuts in daily expenses.

The Chancellor admitted that “too many people in too many parts of our country” did not yet feel for which they voted Work Was led to power last year with a large majority.

With many Labor MPs who already feel insecure about the Election threat of Reform UK, She has already launched a magic offensive to convince her that her expenditure assessment on Wednesday was not a return to the austerity measures.

Economists warned that the increasing pressure on expenses, including the U -turn Winter fuel payments for pensioners And the counter reaction of the Labor MPs against benefits in use in the event of disabilities led to Reeves being forced to collect taxes or to seek more savings in autumn.

There could also be other tax increases, whereby the calculations of the Ministry of Finance are based on assumptions that the local authorities will present the tax tax taxes for three years with a maximum of 4.99% per year to finance services, including the social supply of adults.

Writing in the Guardian, Keir Starrer said that departmental budgets, which will grow by 2.3% per yearshowed that the government in its efforts to change the country “had entered a new stage”.

“It is an investment in Great Britain’s renewal, so working people have more money in their pockets, more proud of their community and more hope for the future of their children,” he added.

The NHS and the defense Were the big winners The expenditure check, with 90% of the increase in daily budget over the next three years for health and 80% of the increase in capital expenditure that goes for defense, according to the resolution Foundation.

However, this means that other Whitehall departments, including the Ministry of Housing in the Interior, Communities And the local government and the departments of culture, transport and the environment are facing real conditions for their daily budgets and the foreign office, mainly due to auxiliary cuts.

The ministers were through surveys that indicate that the decision of Labor to increase the expenditure in the autumn budget as a whole after a bumpy first year of power and disputed decisions about welfare reductions and a national insurance for employers have not yet been enforced by voters.

A growing noise to change was increased in an increase in support for the support for Reform UK. In her statement to the MPs, Reeves reminded you that Nigel Farage, the leader of the party, Liz Truss’ catastrophic mini budget, had described the best conservative budget since the 1980s.

She added that reform UK now “itchy, the same thing to do again” and already had it £ 80 billion distributed in non -financed expenditure obligations Since the last choice. “You are just not serious,” she said.

In a response to a threat from the rights, the Chancellor made the promise to reduce the expenditure for asylum hotels until the end of Parliament, which she said that she would save £ 1 billion. There were also £ 280 million a year for the new border security command.

However, the home office receives a budget cut that goes beyond the asylum savings and is alerted by police officers and the Mayor of London Sadiq Khan.

The government also represented its own version of Elon Musk’s “Doge” efficiency promise, which indicates that surgical improvements, digital transformation, cutting consultants and AI would make reductions of 14 billion GBP.

Although free school meals are expanded to at least 500,000 more students and 100,000 are raised from poverty, the budgets of the schools are squeezed. The teachers will achieve 4% with additional funding of 615 million GBP next year. However, the schools still have to finance about a quarter of them.

The expenditure check marked the climax of months of discussions between Reeves and her cabinet colleagues, whereby negotiations with the Interior Minister Yvette Cooper went down to the cable.

In the days until the announcement, ministers terminated 15 billion GBP for Transport outside of London14.2 billion £ to build A New nuclear power plant And almost doubling the state expenditure – almost 40 billion pounds – On affordable living space In the next 10 years.

After months of speculation about the commitment of the government for the Netto -Null -Agenda, Reeves confirmed that the ministers would not cut Labor’s Melmmark £ 13.2 billion find for repair from Druggty Homes.

Reeves made a comparison with the 2.9% reduction in savings under the conservative-liberal Democrat coalition-a response from their critics, which they have accused of returning to the austerity measures.

“Austerity measures were a destructive decision for the structure of our society, and it was also a destructive choice for our economy, the investments and demand,” she said.

“Create a lost decade for growth, wages and living standards that are legacy. My decisions are different. My decisions are working decisions.”

Paul Johnson, director of the Institute for Fiscal Studies (IFS), welcomed the “really big sums”, the Chancellor put aside for investment projects. But warned that the daily expenditure plans of some departments look close.

“The funding increases for health and defense are considerable. The consequence is of course a less generous settlement elsewhere,” he said.

Reeves changed their budget rules in the budget of last autumn to the path for an increase in investment expenditure of 113 billion.

The beneficiaries include environmentally friendly energy, social housing and means of transport. The Ministry of Finance hopes that such projects will create jobs, including in disadvantaged areas, and help to make the sluggish economy in Great Britain more productive and kicker.

The expenditure check would not only change the rules for the financial department for the support of investments in England’s regions, but also deliver 52 billion GBP for Scotland, 20 billion GBP for Northern Ireland and 23 billion GBP for Wales.

“We renew the UK. But I know that too many people in too many parts of our country do not yet feel it,” said Reeves. “My job as a chancellor and the purpose of this expenditure check is to change this. To ensure that in the everyday life of people, in their work and on their main roads, this can be felt.”

With the Chancellor who insisted that she would adhere to her “financial rules”-in one person in the discussion of daily expenses through tax documents-warned experts that every economic shock could drain their plans.

Andrew Goodwin, chief economist at the advisory company Oxford Economics, said: “If you consider that the recent government of the government in relation to winter fuel payments could be a forerunner for higher state expenditure in other areas, it is increasingly likely that significant tax increases will be required.”

Ruth Curtice, director of the Resolution Foundation, said: “After a summer of the expenditure, the budget will be far more difficult this autumn. The economic prospects have been weaker since spring – not stronger – and this requires more tax increases or social welfare for the Chancellor to meet your tax rules”.

Shadow Chancellor Mel Stride said: “This is the expenditure that Now, Tax Laterer Review” is that Reeves “knows that in autumn she has to return here with even more and a cruel summer of speculation”.