Concerns have been raised that Rachel Reeves may have to make “staggering” cuts as a result of her spending review plans.
The chancellor is set to unveil plans for all department funding until the next election in 2029 during her review on Wednesday.
Experts have warned the chancellor will have to make £5 billion worth of cuts to ensure the spending plans are fulfilled – with areas such as housing, policing and border control expected to be affected.
The analysis, carried out by researchers at the House of Commons library commissioned by the Lib Dems, found that unprotected departments — which excludes NHS England, the core schools budget and defence — could see the real-terms cuts by 2028/29.
The Lib Dems said the scale of the expected cuts was “staggering”. Spokesperson Daisy Cooper said: “After years of shameful Conservative neglect, it is household budgets and people relying on these services for vital support who are bearing the brunt.
“From social care to neighborhood policing, this Labour government is at risk of failing to deliver the change that people were promised.”
Comment: The spending review will reveal how far the government has been blown off course
‘We are really going to suffer’: Residents’ dismay over nuclear plant investment
Residents, campaigners and organisations have expressed outrage after the Government allocated more than £14 billion towards building a nuclear plant on the Suffolk coast.
The plant is expected to provide 10,000 jobs but residents and campaign groups say it will damage wildlife and impact the community.
Jenny Kirtley, a resident from nearby Sibton who chairs the campaign group Together Against Sizewell C, arranged a demonstration against the development at the site last Saturday, which was attended by around 300 people.
“I have lived in this area on and off most of my life and have never seen anything like it,” she said.
“The devastation going on in this area is unbelievable.
“Net zero is supposed to happen by 2030 – there is no way this is going to be completed by then.
“Leiston has a population of fewer than 6,000: where are all these people going to stay?
“Rent is going sky-high at the moment – it’s absolutely ridiculous.
“We are really going to suffer.”
Fears ‘staggering’ cuts may be required by Rachel Reeves
Concerns have been raised that Rachel Reeves may have to make “staggering” cuts as a result of her spending review plans.
Experts have warned the chancellor will have to make £5 billion worth of cuts to ensure the spending plans are fulfilled – with areas such as housing, policing and border control expected to be affected.
The analysis, carried out by researchers at the House of Commons library commissioned by the Lib Dems, found that unprotected departments — which excludes NHS England, the core schools budget and defence — could see the real-terms cuts by 2028/29.
The Lib Dems said the scale of the expected cuts was “staggering”.
Spokesperson Daisy Cooper said: “After years of shameful Conservative neglect, it is household budgets and people relying on these services for vital support who are bearing the brunt.
“From social care to neighborhood policing, this Labour government is at risk of failing to deliver the change that people were promised.”
What is the spending review?
The chancellor will unveil the results of her line by line spending review, setting out the budgets of government departments until the end of the decade on Wednesday.
Rachel Reeves’ spending review has taken place in two parts, with phase one set out in her October Budget – which included £40 billion of tax hikes and set out departmental spending until 2026.
The second phase has seen departments ordered to set out how adopting technologies such as AI and reforming public services can free up government cash and support the delivery of Labour’s missions.
Wednesday’s review will set out day-to-day departmental spending for the next three years and investment spending for the next four.
Reeves has ruled out borrowing for day-to-day spending and has insisted she will not raise taxes again, prompting questions about how the policies will be funded and whether cuts will be made.
Pictured: Starmer talks to college students in Ipswich
Watch: Sizewell C nuclear plant to be built with £14.2bn government funding
Nuclear plans labelled ‘downgrade’ by Conservatives
The Conservatives have branded the Government’s nuclear development plans as a “downgrade” on the previous government’s commitments.
Speaking from the frontbench, Conservative MP Nick Timothy (West Suffolk) said: “This statement is a downgrade on what the last government put in motion. Today, the Energy Secretary has announced only one small modular reactor (SMR). There is no clear target to increase nuclear power generation, and no news on Wylfa.
“The nuclear industry is expecting news of a third gigawatt-scale reactor. The last government purchased the land and committed to build but on this today, the Energy Secretary said nothing.
“So can he commit to the planning inherited for a third gigawatt-scale plant at Wylfa? And will he recommit to the Conservative policy of 24 gigawatts of nuclear power by 2050?”
Energy Secretary Ed Miliband replied: “I do sort of slightly scratch my head, because he sort of says it’s a downgrade, I mean, we’ve announced the largest nuclear building programme in 50 years.”
Exclusive: Rachel Reeves forced ‘to make £5bn cuts’ to balance books after spending review
Rachel Reeves will need to wield the axe and make nearly £5bn worth of cuts to balance the books in the wake of Labour’s spending review, new analysis has revealed.
The chancellor will on Wednesday announce funding for all departments until the next election in 2029 after a bitter cabinet civil war over what is being dubbed “austerity 2.0”.
But experts have warned Labour will have to make billions of pounds of cuts to ensure Reeves can fulfil her spending plans — with areas such as housing, policing and border control expected to be in the line of fire.
Read The Independent’s full exclusive report here:
When is the spending review?
Rachel Reeves will this week make one of her biggest statements to MPs since Labour’s general election victory.
The chancellor will unveil the results of her line by line spending review, setting out the budgets of government departments until the end of the decade.
The spending review will take place after Prime Minister’s Questions, so at around 12.30pm, on Wednesday, 11 June.
People will be more safe, not less, after spending review, PM insists
The Independent’s political correspondent Millie Cooke reports:
People will be “more safe” not less after the spending review, the prime minister has insisted, promising there is money going into policing and security.
His comments came ahead of Wednesday’s review of government departments, amid growing speculation that there could be cuts to police force numbers and a squeezed Home Office budget.
Asked whether people will be less safe after the spending review, Sir Keir told GB News: “They will be more safe. There’s money going into policing, into security, and that is really important, particularly coming from my background.
“I was chief prosecutor for five years, prosecuting cases across England and Wales. So this is a core belief.
“Those extra police officers will be neighbourhood police officers, and I think that will give people the reassurance in their communities that they are safe”.