“It’s a big deal for this government,” says Simon Case.

“It’s the clearest indication yet of what they plan to do between now and the general election, a translation of their manifesto.

“This is where you should expect the chancellor to say, on behalf of the government: ‘This is what we’re about’.”

As the former cabinet secretary, Mr Case was the man in charge of the civil service during the last spending review, in 2021.

On Wednesday, Rachel Reeves will unveil the Labour government’s priorities for the next three years. But it’s unclear whether it will provide all that much of an answer about what it’s really about.

Unlike the Autumn budget, when the chancellor announced her plans on where to tax and borrow to fund overall levels of spending, the spending review will set out exactly how that money is divided up between the different government departments.

Since the start of the process in December those departments have been bidding for their share of the cash – setting out their proposed budgets in a negotiation which looks set to continue right up to the wire.

This review is being conducted in an usual level of detail, with every single line of spending assessed, according to the chancellor, on whether it represents value for money and meets the government’s priorities. Budget proposals have been scrutinised by so called “challenge panels” of independent experts.

It’s clear that health and defence will be winners in this process given pre-existing commitments to prioritise the NHS – with a boost of up to £30bn expected – and to increase defence spending.

On Sunday morning, the government press release trumpeted an impressive-sounding “£86bn boost” to research and development (R&D), with the Science and Technology Secretary Peter Kyle sent out on the morning media round to celebrate as record levels of investment.

We’re told this increased spending on the life sciences, advanced manufacturing and defence will lead to jobs and growth across the country, with every £1 in investment set to lead to a £7 economic return.

But the headline figure is misleading. It’s not £86bn in new funding. That £86bn has been calculated by adding together all R&D investment across government for the next three years, which will reach an annual figure of £22.5bn by 2029-30. The figure for this year was already set to be £20.4bn; so while it’s a definite uplift, much of that money was already allocated.

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Peter Kyle also highlighted plans for “the most we’ve ever spent per pupil in our school system”.

I understand the schools budget is to be boosted by £4.5bn. Again, this is clearly an uplift – but over a three-year period, that equates to just £1.5bn a year (compared with an existing budget of £63.7bn). It also has to cover the cost of extending free school meals, and the promised uplift in teachers’ pay.

In any process of prioritisation there are losers as well as winners.

We already know about planned cuts to the Department of Work and Pensions – but other unprotected departments like the Home Office and the Department of Communities and Local Government are braced for a real spending squeeze.

We’ve heard dire warnings about austerity 2.0, and the impact that would have on the government’s crime and policing priorities, its promises around housing and immigration, and on the budgets for cash-strapped local councils.

The chancellor wants to make it clear to the markets she’s sticking to her fiscal rules on balancing the books for day-to-day spending.

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But the decision to loosen the rules around borrowing to fund capital investment have given her greater room to manoeuvre in funding long-term infrastructure projects.

That’s why we’ve seen her travelling around the country this week to promote the £15.6bn she’s spending on regional transport projects.

The Treasury team clearly wants to focus on promoting the generosity of these kind of investments, and we’ll hear more in the coming days.

But there’s a real risk the story of this spending review will be about the departments which have lost out – and the promises which could slip as a result.

A corporate intelligence firm which employs Sir John Sawers, the former head of MI6, is closing in on a deal to sell a big stake to a buyout firm.

Sky News has learnt that G3, which was founded in 2004 and advises clients on a range of risks affecting their businesses, has been in detailed talks in recent weeks with private equity suitors including Oakley Capital and KKR.

Precise details of a transaction were unclear on Sunday, although one source suggested that a deal was likely in the coming days, and could value the business at between £200m and £250m.

They said that Oakley Capital – founded by the entrepreneur Peter Dubens – had emerged as the most likely investor, although a deal had yet to be agreed.

Bridgepoint, another London-based private equity firm, had also expressed an interest in G3, the source added.

G3 already has some external investment, having struck a deal with All Seas Capital in 2022, according to the latter’s website.

The firm – which files accounts under the name G3 Good Governance Group – advises companies, private equity firms, sovereign wealth funds and pension funds on areas of commercial risk such as cybersecurity, reported a 27% rise in revenue in 2023.

During that year, the latest for which accounts are available, it recorded earnings before interest, tax, depreciation and amortisation of nearly £9m.

Sir John, who stepped down as the head of MI6 in 2014, was named chairman of G3’s advisory board last year.

Oakley Capital declined to comment, while G3 could not be reached for comment this weekend.

The family behind River Island, the high street fashion retailer, is drawing up a radical rescue plan which could put significant numbers of stores and jobs at risk.

Sky News has learnt that the chain’s owners have drafted in advisers from PricewaterhouseCoopers (PwC) to devise a formal restructuring plan.

The proposals, which are expected to be finalised within weeks, are subject to sign-off, with sources insisting this weekend that any firm decisions about the future of the business have yet to be taken.

River Island is one of Britain’s best-known clothing chains, operating roughly 230 stores across the country, and employing approximately 5,500 people.

Previously named Lewis and Chelsea Girl, the business was founded in 1948 by Bernard Lewis, finally adopting its current brand four decades later.

Accounts for River Island Clothing Co for the 52 weeks ending 30 December, 2023 show the company made a £33.2m pre-tax loss.

Turnover during the year fell by more than 19% to £578.1m.

A restructuring plan is a court-supervised process which enables companies facing financial difficulties to compromise creditors such as landlords in order to avoid insolvency proceedings.

In recent years, it has been used by companies including the casual dining chain Prezzo and, more recently, Hobbycraft, the retailer now owned by Modella Capital.

One source said that if it proceeded a restructuring plan at River Island could emerge within weeks.

This weekend, it was unclear how many stores and jobs might be under threat from a formal rescue deal.

In its latest accounts at Companies House, River Island Holdings Limited warned of a multitude of financial and operational risks to its business.

“The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space,” it said.

“The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.

“A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence.”

In January, Sky News reported that River Island had hired AlixPartners, the consulting firm, to undertake work on cost reductions and profit improvement.

AlixPartners’ role is now understood to have been superseded by that of PwC.

Retailers have complained bitterly about the impact of tax changes announced by Rachel Reeves, the chancellor, in last autumn’s Budget.

Since then, a cluster of well-known chains, including Lakeland and The Original Factory Shop, have been forced to seek new owners.

Poundland, the discount retail giant, is in the latter stages of an auction process, with Hilco Capital and Gordon Brothers remaining interested in acquiring it.

A spokesperson for River Island declined to comment.