Rachel Reeves has promised £1.4bn to rebuild crumbling schools and triple funding for free breakfast clubs, as she gears up for her first budget.
The chancellor said children “should not suffer” due to the UK’s depleted public purse, despite the Labour government needing to plug what it calls a £22bn “black hole”.
However, economists said the funding would generally ensure existing plans keep going, rather than pay for many new initiatives, and teachers said much more cash was needed.
The Treasury said the £1.4bn would “ensure the delivery” of the school rebuilding programme, which was announced in 2020 under then prime minister Boris Johnson.
It aims to rebuild or refurbish about 500 schools in a decade, but progress has been slow.
The £1.4bn is understood to be a £550m increase on last year to support the programme.
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2:54
Concrete crisis: ‘It wrecked our lives’
Budget funding for nurseries, breakfast clubs childcare
The Treasury also confirmed £1.8bn would be allocated for the expansion of government-funded childcare, with a further £15m of capital funding for school-based nurseries.
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The Treasury said the first stage of the plan would pay for 300 new or expanded nurseries across England.
Labour made a manifesto commitment to spend £315m on breakfast clubs by 2028-29.
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6:51
‘I was in tears every night’: Over 320 teachers tell Sky News they have been bullied within their schools
Institute for Fiscal Studies (IFS) researcher Christine Farquharson said the new £30m figure appears to be a “boost on the previously-announced £7m”.
“But this is still only a tenth of what the Labour manifesto plans to spend by 2028-29, so the bulk of the rollout lies ahead,” she added.
The chancellor said: “This government’s first budget will set out how we will fix the foundations of the country. It will mean tough decisions, but also the start of a new chapter for Britain.
“Protecting funding for education was one of the things I wanted to do first because our children are the future of this country. We might have inherited a mess, but they should not suffer for it.”
New pilot seeks to support more ‘stable and loving homes’
Another £44m will help kinship and foster carers, including piloting a new kinship allowance to test whether it can increase the number of children taken in by family and friends.
The government hopes it will “keep more children in stable and loving homes”.
Ms Farquharson said that “in a tight fiscal context” the commitments “largely reflect decisions to continue programmes”.
She said: “Putting £1.4bn into the school rebuilding programme next year will be enough to keep what was always intended as a 10-year programme going in its sixth year.
“£1.8bn for the rollout of new childcare entitlements similarly confirms plans set out under the previous government.”
Image: The Budget – a special programme on Sky News
School leaders outline what else is needed
School leaders warned that the funding announcement left a “significant shortfall in terms of what is needed to restore the school estate to a satisfactory condition”.
Paul Whiteman, general secretary of the National Association of Head Teachers union, said: “It is reassuring to hear that school funding will be protected next year and that education will continue to be prioritised as schools face continuing financial pressures.
“It is now important that the government is very clear about what it means by ‘protected’.
“We urge the government to use the reduction in pupil numbers some schools are facing to increase per pupil funding both in the short and longer term.”
He said the £1.4bn was “helpful” but urged the Treasury to use the spending review next spring to commit to a “major school rebuilding programme”.
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A Conservative Party spokesman said: “In government, the Conservatives had a relentless focus on giving every child the best start in life.
“We launched the largest-ever expansion of childcare, recruited 27,000 teachers and drove up school standards.
“On the other hand, Labour are breaking their promises to the public.
“Just like their broken promises on hiking taxes and fiddling the fiscal rules, they’ve broken their promises to students – introducing a new tax on education and plotting the cancellation of dozens of new schools projects.”
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Capital gains tax, inheritance tax and fuel duty are other options to raise revenue Ms Reeves has on the table, as she seeks to put the economy on a firmer footing.
Education Secretary Bridget Phillipson, deputy leader of Reform UK Richard Tice, former governor of the Bank of England Mervyn King, and director of the Institute for Fiscal Studies Paul Johnson will be on the Sunday Morning with Trevor Phillips show on Sky News from 8.30am this morning.
Former minister Tulip Siddiq has accused the leader of Bangladesh of conducting an “orchestrated campaign” to damage her reputation and “interfere with UK politics”, according to a new legal letter seen by Sky News.
The Labour MP also said comments made by Professor Muhammad Yunus in a Sky News interview have prejudiced her right to a fair investigation, meaning the ongoing corruption inquiries into her should be dropped.
In March, the chief adviser – who is effectively the country’s interim leader – told Sky News that Ms Siddiq “has so many (sic) wealth left behind here” and “should be made responsible”.
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Bangladesh’s leader talks to Sky News
Bangladesh’s Anti-Corruption Commission (ACC) has opened several investigations into Ms Siddiq alleging corruption in connection with the government of her aunt Sheikh Hasina, who was ousted as the country’s prime minister last year.
In the new correspondence sent today to Professor Yunus and the ACC, lawyers for the former minister write: “The time has now come for the chief adviser and the ACC to abandon their wholly misconceived and unlawful campaign to smear Ms Siddiq’s reputation and interfere with her public service.”
Sky News has approached the chief adviser and the ACC for comment.
The Bangladeshi authorities have previously said they have evidence to back up their claims of corruption and will pursue action through the country’s courts.
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2:35
The Tulip Siddiq accusations explained
Speaking to Sky News on Monday, Ms Siddiq said: “I will not be allowing them to drag me into their world of dirty politics and nothing is going to stop me from pursuing the job that I was elected to do with an overwhelming majority, which is representing the people of Hampstead and Highgate.
“So they need to stop this political vendetta, this smear campaign, and this malicious persecution right from the beginning.”
The MP had requested a meeting with the Bangladeshi leader during an official visit to the UK earlier this month to “clear up” any misunderstandings.
But this was turned down by the chief adviser, who said he did not want to “interrupt a legal procedure”.
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0:29
MP says arrest warrant is ‘smear campaign’
In the new legal letter, lawyers for Ms Siddiq say the interim leader had already unfairly influenced the inquiries through previous comments.
“The copious briefings to the media, the failure to respond to our letters, the failure to even ask to meet with and question Ms Siddiq during their recent visit to the United Kingdom are impossible to justify and completely inconsistent with a fair, lawful and serious investigation,” reads the letter.
The correspondence also sets a deadline of 30 June 2025 for the Bangladeshi authorities to reply by, stating that “in the absence of a full and proper response… Ms Siddiq will consider this matter closed”.
A former Nobel Prize winning economist, Professor Muhammad Yunus became interim leader of Bangladesh last August after weeks of deadly protests forced Sheikh Hasina from power.
He has pledged to root out corruption and recover alleged stolen wealth before holding votes to elect a permanent administration.
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0:47
Tulip Siddiq questioned over Bangladesh corruption
Last month, Professor Yunus banned the Awami League – the political party still led by Sheikh Hasina – from standing in the coming elections.
That led to criticism from those still loyal to the former prime minister, with protests also sparking in the country over jobs, pay and planned reforms.
Earlier this year, it was revealed that Tulip Siddiq had lived in several London properties that had links back to the Awami League.
She referred herself to the prime minister’s standards adviser Sir Laurie Magnus who said he had “not identified evidence of improprieties” but added it was “regrettable” Ms Siddiq had not been more alert to the “potential reputational risks” of the ties to her aunt.
Sheikh Hasina is currently standing trial in absentia in Dhaka over alleged killings during last summer’s civil unrest.
Asked by Sky News if she had any regrets about links to the Awami league, Ms Siddiq said: “The main thing I would say to you, I’m very proud to be the MP for Hampstead and Highgate. I was born in London, I grew up in London. I went to school here and now I’m an MP here.”
Staff from the National Crime Agency visited Bangladesh in October and November as part of initial work to support the interim government in the country.
Last month, the NCA confirmed it had secured a “freezing order” against a property in north London linked to Ms Siddiq’s family.
She denies all the allegations – and sources close to the MP say the authorities have been sending correspondence to an address in Dhaka that has no connection with her.
A “rapid” national investigation into NHS maternity services has been launched by the government.
The announcement comes after Health Secretary Wes Streeting met families who have lost babies and amid the ongoing investigations at some NHS trusts into maternity care failings.
The investigation in England is intended to provide truth to families suffering harm, as well as driving urgent improvements to care and safety, as part of efforts to ensure “no parent or baby is ever let down again”.
Mr Streeting, who was speaking at the Royal College of Obstetricians and Gynaecologists (RCOG) conference in London, apologised on behalf of the NHS for what families had been through and said it was “clear something is going wrong”.
He added: “For the past year, I have been meeting bereaved families from across the country who have lost babies or suffered serious harm during what should have been the most joyful time in their lives.
“What they have experienced is devastating – deeply painful stories of trauma, loss, and a lack of basic compassion – caused by failures in NHS maternity care that should never have happened.
“Their bravery in speaking out has made it clear: we must act – and we must act now.”
Mr Streeting said families have had to “fight for truth and justice” and had described being “ignored, gaslit, lied to, manipulated and damaged further by the inability for a trust to simply be honest with them that something has gone wrong”.
The investigation will consist of two parts.
Image: Wes Streeting speaking during the RCOG conference. Pic: PA
The first will investigate up to 10 of the most concerning maternity and neonatal units, including Sussex, in the coming weeks to give affected families answers as quickly as possible, according to the Department of Health.
The second will be a “system-wide” look at maternity and neonatal care, uniting lessons from past inquiries to create one clear set of actions designed to improve NHS care.
A National Maternity and Neonatal Taskforce will be chaired by Mr Streeting and made up of experts and bereaved families.
The investigation will begin this summer and report back by December.
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2:02
From 2024: ‘The joy was sucked out of having a baby’
Sir Jim Mackey, chief executive of NHS England, said: “This rapid national investigation must mark a line in the sand for maternity care – setting out one set of clear actions for NHS leaders to ensure high quality care for all.”
Dr Ranee Thakar, president of the RCOG, said: “The maternity workforce is on its knees, with many now leaving the profession.”
RCM chief executive Gill Walton said: “Everyone involved in maternity services – the midwifery community, obstetricians, anaesthetists, sonographers and, of course, the women and families in their care – knows that maternity services are at, or even beyond, breaking point.
“This renewed focus and commitment by the health secretary to deliver change is welcome, and we will do everything we can to support him in doing so.”
“We have lost our beautiful daughter, sister, friend and mother. Annabel was a truly wonderful woman,” the tribute read.
“She touched the hearts of so many.
“She gave her life to helping the vulnerable and the disadvantaged whether it was in refugee camps in Africa or setting up MamaSuze in London, to enhance the lives of survivors of forced displacement and gender-based violence.”