This expenditure examination is a massive matter. This is a massive agreement due to the sums of money and capital that the government is about to allocate – 600 billion pounds sterling in the next three to four years.
But it is also a massive political moment like the Work The government is trying to turn the corner of a difficult first year and show voters that it can make the change it has promised.
It is not, let’s say no 10 initiates, another reset, but rather a chance to show the “workers” why they voted work. Look at the blitz of the announcements in recent days, and it is a government that tries to sell the history of renewal.
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On Tuesday, the Prime Minister and his energy secretary, Ed Miliband, announced the largest nuclear construction program for half a centuryWith 14.2 billion sterling pounds paid in Sizewell C on the Suffolk coast to create more than 10,000 jobs during the next decade and ensure energy security.
Last week, the chancellor Announced 15 billion pounds sterling for new rail networks, trams and bus Through the West Midlands and the North. On Wednesday, it should also light up a new railway line between Liverpool and Manchester, and invest in the construction of houses.
In total, there will be 113 billion pounds sterling in additional capital investment, which the government will supervise as the “decade of renewal” long walk around the three pillars of security, health and the economy.
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How will Rachel Reeves balance books?
But it is only half of this spending review and only half of the story that we will hear on Wednesday, because the generosity of capital investment – which, according to the chancellor, will only be possible of the choices that it has made during the first year of the government – will be equaled at the expense of expenses for daily expenses.
Safety and health are two of its pillars, and it will be the defense and health that will take a larger share of the expenditure pot.
Frustration at home office
Having daily expenses with front loads in the first and second years of this labor administration, the Global Pot will increase 1.2% in real terms each year for the rest of the Parliament.
It is a fairly modest growth and, without sure, it means that if the defense and NHS budgets obtain a larger share of the pot, there will be real reductions in certain unprotected departments.
The one to look at is the Home officeWhere the Minister of the Interior was the last to hold a regulation and seems to have imposed it by the Chancellor.
His is a huge brief, covering the police – including the manifesto including increasing the police to 13,000 years – border security, immigration and internal security.
There is frustration in the Interior Ministry that if “security” is one of the pillars of the government, it is the Ministry of Defense who received funding. If Yvette Cooper Is it to deliver to the police numbers, what could he have to give elsewhere?
Also pay pressure on the council budgets because the Chancellor uses her investment budget to invest in the construction of a house, while daily expenses are pressed in our advice, schools and courts.
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Sky’s economy and data editor, Ed Conway, explains what we can expect in the Rachel Reeves expenses.
Reeves under pressure to increase expenses
This is friction. Rachel Reeves will insist on Wednesday that spending increases by 190 billion pounds more during the Parliament, partly because of these difficult tax increases in his first budget.
But the generosity in capital investments will not be able to hide short -term pressures on the daily expenses of a Labor Party and a set of voters faded with cuts and to have the impression that their life does not improve.
THE Winter fuel inversion is the point of evidence. The Chancellor, who will not loosen her tax finance rule for daily expenses through tax receipts, must find 1.25 billion pounds sterling to pay nine million retirees this winter.
She is also under pressure to lift the social benefits ceiling, with Liz Kendall, Bridget Phillipson and Sir Keir Starmer all thought that this happens. It will cost up to 3 billion pounds sterling.
There is a pressure to modify the disability cuts in order to obtain changes in social protection in the parliament.
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The fact is that the chancellor is subject to enormous pressure to lift expenses, not to keep the foot on his throat, and this means that in the fall, the clamor of targeted taxation increases will only grow.
Can Reeves sell the history of the “renewal” of this government?
But among the best team, there is a certain optimism kept.
The political pain of the winter fuel allowance has decreased the pressure on the doorstep: a very high-end work politician told me this week that last weekend was the first time that the case was not noted at the door and “the first time for a long time that it felt good.”
On Wednesday, there will be pain. The headlines will cry cuts and open the conversation on the tax increases which will appear until the budget in October.
But it will also be a time when this Labor government can show voters in the form of dozens of projects and thousands of jobs, that he has a reconstruction plan.
Find out more:
Expenditure examination guide
Five things that you need to know about the expenditure examination
The new nuclear power plant obtains a green light
This is an examination of expenses that will define work in power for the rest of this Parliament and how our country resembles and feels for the years to come.
The political objective is to do enough – whether on the waiting lists at the hospital, energy bills, wages or shovels in the ground – to persuade voters during the next elections to give another chance on plowing.
For months, deputies quietly growl that this Labor government is in power without history to tell. Wednesday, we will see how much Ms. Reeves can write and sell the next chapter.