Treasury Regional investment to rise after rule change

Rachel Reeves is preparing to announce billions of pounds of extra spending for areas outside south-east England at next month's spending review, after rewriting Treasury investment rules.

- Kiran Stacey

The chancellor will announce the extra capital spending after a review of the Treasury's green book, which determines how officials calculate the costs and benefits of a scheme.

Critics say the rules are biased in favour of more economically productive areas of the country, and Reeves has promised a review to be published on the same day as the spending review.

The announcement, revealed by the Times, comes as ministers look for ways to combat the threat of Reform UK in the "red wall" seats of the north and Midlands, which were won by the Conservatives in 2019 and taken by Labour last year.

Those areas are likely to be hit by reduced departmental spending, which Reeves will also lay out at the spending review.