Reeves faces red wall MP revolt over spending review

Rachel Reeves is facing a revolt from an influential group of Labour MPs amid accusations that she has forgotten about investment in the North and Midlands.

- DAVID MADDOX POLITICAL EDITOR

The concerns flagged by the red wall group of MPs come as the chancellor is in a standoff with other cabinet ministers, including deputy prime minister Angela Rayner, over the details of her upcoming spending review.

The red wall areas in the North and Midlands are particularly under threat from the surge in support for Nigel Farage’s Reform UK, which swept to power in county councils earlier this month, including Durham at the expense of Labour.

With the spending review set to be published on 11 June, it is understood that the Treasury has set a deadline of this weekend for government departments to agree spending plans, which will set priorities and budgets until the next election.

Only defence with a spending package of 2.5 per cent of gross domestic product, and health budgets are protected, with others expected to find efficiency savings to help Ms Reeves balance the books.

But already, police chiefs have issued a letter warning that government priorities on crime will be hard to achieve with cuts.

In addition, unions have warned that a 29 per cent pay demand by junior doctors is just the first of a series of tough wage demands coming the government’s way if they want to avoid a series of damaging strikes.

She may also need to find £2bn to restore the winter fuel for pensioners after Sir Keir Starmer ordered a review of the decision to remove it from 10 million people.