Rishi Sunak will insist he is committed to “levelling up” the UK next week as he unveils long-delayed new infrastructure plans following a furious row over a pay freeze for millions.
Unions reacted angrily to reports the chancellor will announce “pay restraint” for public sector workers in his spending review, though frontline doctors and nurses are expected to be exempt.
Mr Sunak is already facing criticism over reports he is preparing to set aside a legal commitment to spend 0.7 per cent of the UK’s GDP on overseas aid.
The chancellor has been lauded for a series of schemes designed to keep the economy afloat during the coronavirus crisis, in particular the furlough scheme which paid the wages of millions through lockdown.
But he now faces the tough task of trying to find a way to pay for that largesse at the same time as meeting government commitments made before the start of the crisis, including to “level up” Britain.
The infrastructure strategy was due to have been published earlier this year but was delayed.
It is designed to boost transport connections as well as help the UK achieve its target on net-zero emissions by 2050.
It will be unveiled on Wednesday alongside tens of billions of pounds-worth of infrastructure investment, including £1.6bn to tackle potholes.
Mr Sunak said: “We are absolutely committed to levelling-up opportunities so those living in all corners of the UK get their fair share of our future prosperity.
“All nations and regions of the UK have benefited from our unprecedented £200bn Covid support package. And after a difficult year for this country, this spending review will help us build back better by investing over £600bn across the UK during the next five years.”
Labour accused the chancellor of “more empty rhetoric”.
“The Conservatives have been in power for 10 long years, but their track record is a litany of failure and broken promises,” said Anneliese Dodds, the shadow chancellor.