Reeves sets out spending as Govt 'moves to a new phase'

RACHEL Reeves said “we are renewing Britain” as she set out how she plans to spend hundreds of billions of pounds of taxpayers’ money.

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The Chancellor said total departmental budgets would grow by 2.3% a year in real terms and promised a “record cash investment” in the NHS, amounting to an extra £29 billion a year.

Setting out the spending review in the House of Commons, Ms Reeves said the tax hikes and looser borrowing rules allowed her to spend £190 billion more on the day-to-day running of public services and £113 billion on investment.

The review marks a watershed moment for the Government, almost a year after Labow’s election land-slide.

Prime Minister Sir Keir Starmer told the Cabinet that the spending review “marks the end of the first phase of this Government, as we move to a new phase that delivers on the promise of change for working people all around the country and invests in Britain’s renewal”.

In a sign of the difficulties which face Sir Keir and the Chancellor, migrants continued to cross the English Channel in small boats on Wednesday.