Rachel Reeves will unveil her spending review on Wednesday, arguing that her priorities are “the priorities of working people”.
The Chancellor is expected to focus on “Britain’s renewal” as she sets out her spending plans for the coming years, with big increases for the NHS, defence and schools.
Arguing that the Government is “renewing Britain”, she will acknowledge that “too many people in too many parts of the country are yet to feel it”.
She will say: “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.”
Among the main announcements is expected to be a £30 billion increase in NHS funding, a rise of around 2.8% in real terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5% of GDP.
But Wednesday could present a tough prospect for other government as the Chancellor seeks to balance Labour’s commitments on spending with her fiscal rules.
The Institute for Fiscal Studies has already warned that any increase in NHS funding above 2.5% is likely to mean real-terms cuts for other departments, or further tax rises to come in the budget this autumn.
She will say on Wednesday: “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.”
