Reeves puts a reasonable house plan at 39 billion pounds in the spending review center

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On Wednesday, Chancellor Rachel Reeves will develop a “reasonable housing” plan of 39 billion pounds in the heart of the UK’s multi -year spending review, because it combines narrow pressure in daily spending with a plan of 113 billion pounds to enhance the country’s country’s infrastructure.

The Ministry of Treasury said that 39 billion pounds is allocated to homes at reasonable prices over 10 years, which represents “the largest batch of social investment at reasonable prices in a generation.”

Review of Reeves spending – a result of the most famous of the intense bargaining between the treasury ministers and the cabinet ministers – is a pivotal moment for the labor government, the setting of the budgets of departments and priorities for the coming years and setting the political basis for the upcoming elections.

But there are increasing expectations that Reeves can have to raise taxes in the fall, as economic growth is still slow and the cost of government debt service is still in height.

On Wednesday, you will spare the defense and health spending, which will be tantamount to a tightening of Whitehal’s daily expenses that involve some departments facing real discounts. Local government services are expected to be subjected to serious pressure.

However, the counselor will focus on an overwhelming evacuation of borrowing on capital projects, and he promised 113 billion pounds of additional spending on Parliament, which will benefit in particular from “cities and cities outside London and southeast.”

“The government is renewing Britain,” Reeves will say in a letter to the House of Commons. “But I know that many people in many parts of the country have not felt it yet.”

The National Housing Union, whose members provide housing for the people of 6 million, described the housing package at reasonable prices of 39 billion pounds as “transformative”.

She said: “This is the most ambitious house program at reasonable prices, in addition to the long -term certainty of rents, which will start the generations’ batch in providing new social houses.”

Reeves promise to new roads, railways, public transport and green energy in the north and Midlands aim to raise regional growth rates.

Strategists at work hope also to slow the progress of Nigel Farage’s Report UK, which currently leads to opinion polls.

But the mayor of the work mayor in London, Sadiq Khan, said that the focus on the areas outside the capital was “incredibly short -looking” and the city will leave less than the money it needs to improve its infrastructure.

Reeves remains in a narrow financial place, with speculation that it may have to raise taxes in its autumn budget. Its spending envelope allows for a real -term moderate increase by only 1.2 percent annually for the current spending over the next three years.

However, its decision last year to relax its borrowing rules to allow the investment of the additional infrastructure will be allowed to distribute billions of pounds to favorite projects. The allies insisted on the allegations that the spending review represents a return to austerity was “ridiculous”.

Sir Mail Strad, shadow consultant, criticized the Labor Party because of “money spending it does not own” while loading Britain with debts that have become more expensive to serve. A step said that more tax increase in the fall was “inevitable.”

The full details of the capital spending plan will be determined at a value of 113 billion pounds in the 10 -year infrastructure strategy next week, but the consultant has already pointed to significant investments in urban transport plans, nuclear energy and artificial intelligence.

“The priorities for reviewing this spending are the priorities of the workers,” says Reeves. “To invest in security, health and economics for our country, so workers all over the country are better.” “Instead of retreat, I chose investment.”

Labor representatives also expect Reeves to address their concerns about children’s poverty, and to put long -term plans to improve NHS. It will follow an industrial strategy and a defensive industrial plan later in the month.

Paul Johnson, director of the Institute of Financial Studies, who is suffocating thinking, said that the advertisements represent a tremendous moment to work because they specify their priorities in the individual areas of spending after the general envelope of parliament was placed last October.

But it leaves mild risk suspended on public financial affairs. Through the front loading of spending-with a special boost in particular for the budgets of departments in 2025-26-Reeves left itself open to speculative that it should top future plans, which increases pressure on public financial affairs.

Meanwhile, Rivs left the narrow narrow £ 9.9 billion against its main financial base of achieving a balance between the current budget risks in the event of erosion given the possibilities of weak growth and high borrowing costs.

“He leaves all financial questions without an answer,” said Johnson, who warned that there is a tax opportunity at least at least in the fall.