Rachel Reeves told it is ‘impossible’ to invest in growth, public services and net zero in spending review
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Rachel Reeves faces budget conundrum in spending review
- Chancellor Rachel Reeves is facing pressure over spending plans as some departments, including Angela Rayner's, have not settled their budgets with the Treasury.
- Economists warn that increased defence spending commitments will make it "impossible" for the chancellor to invest in economic growth, public services, and net-zero policies.
- The Institute for Fiscal Studies (IFS) predicts that the upcoming spending review will be dominated by funding for defence and the NHS, with other priorities receiving limited funding.
- The Local Government Association (LGA) is calling for a "significant and sustained" boost to council funding to avoid devastating consequences for vital services.
- The Liberal Democrats are urging the government to invest in social care and negotiate a UK-EU customs union to boost the economy before making cuts to stretched budgets.