Rachel Reeves' upcoming spending review reveals a £113 billion increase in funding for infrastructure projects, justified by a shift in fiscal rules. While the government asserts that this funding could only have materialized under Labour, it simultaneously signals substantial cuts in everyday budgets across various sectors, including policing and education. The anticipated spending growth averages just 1.2% annually, falling significantly short of prior years. The Institute for Fiscal Studies warns that fulfilling these spending promises may necessitate tax increases in the autumn, given impending priorities like restoring winter fuel allowances and addressing child poverty.
"The Treasury aims to prioritize energy, transport, and infrastructure projects with a notable boost from the adjusted fiscal rules, emphasizing Labour's role in this funding."
"Despite increased capital funding of £113 billion, departments will face severe spending cuts, particularly in policing, local government, and education, stirring significant controversy."
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