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.
Initially, only those with a body mass index of over 40 who have at least four other health problems linked to obesity will be eligible.
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0:21
Can you get pregnant when on weight loss drugs?
Some doctors have raised concerns about the additional workload this new programme will bring, while pharmacists fear it could lead to supply shortages.
Dr Claire Fuller from NHS England said: “We urgently need to address rising levels of obesity and prioritise support for those who are experiencing severe ill health – and greater access to weight loss drugs will make a significant difference to the lives of those people.”
She added: “While not everyone will be eligible for weight loss drugs, it’s important that anyone who is worried about the impact of their weight on their health discusses the range of NHS support available with their healthcare professional.”
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1:22
Weight loss drugs ‘changing way we see obesity’
The chairwoman of the Royal College of GPs welcomed NHS England’s decision to pursue a phased rollout, and said current workloads must be factored in to ensure the jabs can be prescribed safely.
Professor Kamila Hawthorne went on to say: “While weight loss medications have a lot of potential benefits for patients who are struggling to lose weight and who meet all the clinical criteria for a prescription, they mustn’t be seen as a ‘silver bullet’ to aid weight loss.
“We also need to see a focus on prevention, stopping people becoming overweight in the first place so they don’t require a medical intervention later.”
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‘How I tried to get weight loss drugs’
Her remarks were echoed by the National Pharmacy Association’s chairman Olivier Picard, who says “prescribing these medications alone misses the point”.
He argued that they need to be part of a comprehensive strategy that includes lifestyle coaching, exercise and nutritional guidance – but many GPs currently “lack the bandwidth” to provide this support.
“As a result, we could end up in a situation where patients are prescribed the medication, lose weight, and then experience rebound weight gain once the course ends – simply because the foundational lifestyle changes weren’t addressed,” Mr Picard added.
Estimates suggest about 29% of the adult population is obese.
Health Secretary Wes Streeting says the government “is determined to bring revolutionary modern treatments to everyone who needs them, not just those who can afford to pay”.
Metropolitan Police Commissioner Sir Mark Rowley says he is “shocked and frustrated” at a planned protest in support of Palestine Action.
The demonstration, due to take place in Westminster later, comes as the government moves to ban the group under anti-terror laws.
Activists from Palestine Action hit the headlines last week after targeting RAF Brize Norton and damaging two military aircraft in a significant security breach.
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Sir Mark said that – until this happens – the force has “no power in law” to prevent the protest from taking place, but lawbreakers will be “dealt with robustly”.
He added: “This is an organised extremist criminal group, whose proscription as terrorists is being actively considered.
“Members are alleged to have caused millions of pounds of criminal damage, assaulted a police officer with a sledgehammer and last week claimed responsibility for breaking into an airbase and damaging aircraft.
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“Multiple members of the group are awaiting trial accused of serious offences.”
Image: Trump’s golf course in Ayrshire was vandalised by Palestine Action. Pic: PA
Over the weekend, Business Secretary Jonathan Reynolds said he could not rule out the possibility of a foreign power being behind Palestine Action.
Any move to proscribe the group must be debated and approved by MPs and peers.
Speaking to Sunday Morning With Trevor Phillips on Sky News, former justice secretary Lord Charlie Falconer suggested that vandalising aircraft would not solely provide legal justification for such a move.
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2:45
Plans to ban activist group criticised
Lord Falconer said: “I am not aware of what Palestine Action has done beyond the painting of things on the planes in Brize Norton, they may have done other things I didn’t know.
“But generally, that sort of demonstration wouldn’t justify proscription so there must be something else that I don’t know about.”
Palestine Action has staged a series of protests in recent months – spraying the offices of Allianz Insurance in London, and vandalising Donald Trump’s golf course in Ayrshire.
Sir Keir Starmer has said stability in the Middle East is “a priority” following US strikes on Iran’s nuclear facilities, as the world has reacted to the attack.
The prime minister also called on Iran to “return to the negotiating table” to “reach a diplomatic solution to end this crisis”.
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2:30
US strikes on Iran explained
In a statement, Sir Keir said: “Iran’s nuclear programme is a grave threat to international security.
“Iran can never be allowed to develop a nuclear weapon, and the US has taken action to alleviate that threat.
“The situation in the Middle East remains volatile and stability in the region is a priority.
“We call on Iran to return to the negotiating table and reach a diplomatic solution to end this crisis.”
The UK was not involved in the strikes but was informed about them in advance by the US, Business Minister Jonathan Reynolds told Sky News’ Sunday Morning with Trevor Phillips.
Sir Keir and Foreign Secretary David Lammy had been pushing for a diplomatic solution. On Thursday, the prime minister warned of a “real risk of escalation” in the conflict.
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3:34
Trump: Iran strikes ‘spectacular success’
The US struck three sites in Iran early on Sunday morning, with Donald Trump boasting the country’s key nuclear sites were “completely and fully obliterated” in an address to the nation from the White House and warned there could be further strikes if Iran retaliates.
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1:20
‘Trump’s bold decision will change history’
Netanyahu praises Trump
Israel‘s Prime Minister Benjamin Netanyahu praised Mr Trump for the strikes, saying: “Your bold decision to target Iran’s nuclear facilities with the awesome and righteous might of the United States will change history…
“History will record that President Trump acted to deny the world’s most dangerous regime the world’s most dangerous weapons.”
UN secretary-general ‘gravely alarmed’ by US attack
But UN secretary general Antonio Guterres said he was “gravely alarmed by the use of force” by the US against Iran.
“This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security. There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world.”
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European Union foreign policy chief Kaja Kallas urged all sides to step back and return to the negotiating table. “Iran must not be allowed to develop a nuclear weapon,” she said in a post on X.
“I urge all sides to step back, return to the negotiating table and prevent further escalation,” she said, adding that EU foreign ministers will discuss the situation tomorrow.
Image: Cuba’s President Miguel Diaz-Canel. Pic: Reuters
How the world reacted to the strikes
Cuba’s President Miguel Diaz-Canel said on X: “We strongly condemn the US bombing of Iran’s nuclear facilities, which constitutes a dangerous escalation of the conflict in the Middle East.
“The aggression seriously violates the UN Charter and international law and plunges humanity into a crisis with irreversible consequences.”
Venezuela’s foreign minister Yvan Gil said his country’s government “condemns US military aggression” and “demands an immediate cessation of hostilities”.
In a statement, an Australian government spokesperson said Iran’s nuclear and ballistic missile programme “has been a threat to international peace and security”.
Image: Japan’s Prime Minister Shigeru Isiba. Pic: Reuters
Japan’s Prime Minister Shigeru Ishiba said it is “crucial that there be a quick de-escalation of the conflict”.
Italy’s foreign minister Antonio Tajani said after the attack that his country’s government hopes “a de-escalation can begin and Iran can sit down at the negotiating table”.
The US attack came after more than a week of strikes by Israel, which have significantly degraded Iran’s air defences and offensive missile capabilities, and damaged its nuclear enrichment facilities.
Israel’s strikes on Iran have killed at least 865 people and wounded 3,396 others, according to the Washington-based group Human Rights Activists. The group said of those killed, 365 were civilians and 215 were security force personnel.