Rachel Reeves is preparing to unveil its much awaited expenditure review, telling how much money NHS, school, police and other public services will get in the next few years.
Chancellor will emphasize the plan to “invest in Britain” by spending an additional £ 113BN on the infrastructure such as energy and transport projects in his speech on Wednesday.
But some government departments are likely to face the actual period cuts, as the Chancellor prioritizes health and defense budget.
The review Labor will take the government to the next general election, in 2029, with day to day spending for the next three years and investment budget for the next four.
The ministers have been in a tense conversation with the Chancellor at the funding settlements for their departments.
Home Secretary Yett Cooper was final to agree on a deal on Monday, police chiefs called for more money, while Housing Secretary Angela Rener arrived on an agreement on Sunday.
Rainer’s department is expected to receive £ 39bn for a program to promote social and affordable housing over the next 10 years.
A government source said that this investment would help ministers kill their targets of building 1.5 million new houses by 2030.
Chancellors will also be committed to expand £ 3 bus fare hats in England by March 2027.
In a speech last week, Reeves suggested that he had rejected the requests for cash from ministers and argued that a squeeze on funding was “product of economic reality”.
The government’s spending plan has been affected by dull economic development, high government borrowing costs and global instability.
Last year, in his autumn budget, the Chancellor announced a price of £ 40BN to fund NHS and other public services.
He is expected to say on Wednesday that his spending plans “only because of stability is possible that I have introduced and the options I choose in the autumn”.
But the Institute for Fiscal Studies (IFS) Think Tank has warned that difficult options are “unavoidable”, some departments are facing cuts, when the increasing cost is accounted.
IFS stated how much money had to be paid to pay NHS, “One of the most resulting decisions of the expenditure review”.
The Department of Health and Social Care (DHSC) plans to be £ 202BN in 2025-26, or 39% of the total day-to-day departmental expenses.
The IFS warned that a major growth in NHS funding would mean that either the tax is cut for other departments or further taxes to come to the budget in this autumn.
Chancellor has opposed the call, Among their own MPs, to rest his rules when borrowed, or to further taxes.
Raves’ self-logged rules require day-to-day government costs to pay for tax income, instead of borrowing; And the debt fall as part of national income over a period of five years.
Despite increasing taxes on businesses, the employer has so far stuck by the commitment of the labor manifesto, which does not increase the income tax, national insurance or VAT.
She will say on Wednesday: “I have made my choice. In place of chaos, I choose stability. Instead of fall, I choose investment. Instead of retreating, I choose national renewal.
“These are my choice. They are the choice of this government. They are the choice of British people.”
She will also highlight infrastructure expenses, such as £ 14bn nuclear power plant for size and £ 15.6bn for local transport projects.
“Priority in review of this expenditure is the priorities of working people,” she will tell MPs.
“For the security of our country, to invest in health and economy so that people working in our entire country are better,” she would say.
Conservative Shadow Chancellor Mail has “accused Labor of spending money, there is no reliable scheme for this”.
“This means more lending, more debt, and, essentially, more tax grows in autumn budget,” he said.
“Don’t be foolish. We can’t do labor.”
Liberal Democrats urged the Labor Government to take immediate steps to promote economic growth to avoid any expenditure cut in public services.
Liberal Democrat Treasury spokesman Daisy Cooper said, “From social care to Neberhood policing, this labor government is in danger of failing to give the change that people were promised.”