Chancellor Rachel Reeves will set out plans in the spending review on Wednesday to invest billions of pounds across Britain, as she admits “too many people” are “yet to feel” the benefits of the government’s work so far.
In a statement in the House of Commons, the chancellor will vow to spend vast sums of money across the country to “ensure that renewal is felt in people’s everyday lives, their jobs, their communities”.
As well as confirming the budgets for each government department for the next three years, the Treasury says Ms Reeves will announce plans to invest billions in security, health, and the economy more broadly.
The chancellor will set out “reforms that will guarantee towns and cities outside London and the South East can benefit from new investment”, the department said.
Image: Chancellor Rachel Reeves will set out the government’s spending plans for the next three years. Pic: Reuters
Ms Reeves is expected to say: “This government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.
“This government’s task – my task – and the purpose of this spending review – is to change that. To ensure that renewal is felt in people’s everyday lives, their jobs, their communities. So that people can see a doctor when they need one. Know that they are secure at work. And feel safe on their local high street.
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“The priorities in this spending review are the priorities of working people. To invest in our country’s security, health and economy so working people all over our country are better off.”
Watch live coverage of the spending review on Sky News from 12pm
Ms Reeves will also formally confirm “the biggest ever local transport infrastructure investment in England’s city regions”, worth £15.6bn, as well as £86bn to “boost science and technology”, including by building the Sizewell C nuclear power station.
She will also announce the extension of the £3 cap on bus fares, Sky News understands. The cap – which Labour lifted from £2 – was due to expire at the end of this year.
And £39bn for a new Affordable Homes Programme over the next 10 years is also expected to be announced, as the government seeks to ramp up housebuilding to hit its manifesto pledge of building 1.5 million new homes by the end of this parliament.
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3:56
What to expect from the spending review
The chancellor will argue: “The choices in this spending review are possible only because of the stability I have introduced and the choices I took in the autumn.”
One of those choices included cutting the winter fuel allowance for almost all pensioners – a decision the government has now U-turned on, at a cost of £1.25bn. However, she is not expected to explain where that money will come from until the budget this autumn.
Ms Reeves will tell MPs: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.
“These are my choices. These are this government’s choices. These are the British people’s choices.”
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10:28
‘You are everyone’s worst enemy’
But shadow chancellor Sir Mel Stride said this will be “the ‘spend today, tax tomorrow’ spending review”, arguing that the government is “spending money it doesn’t have, with no credible plan to pay for it”.
He said in a statement: “Rachel Reeves talks about ‘hard choices’ – but her real choice has been to take the easy road. Spend more, borrow more, and cross her fingers. This spending review won’t be a plan for the future – it will be a dangerous gamble with Britain’s economic stability.”
He went on: “Today, we’ll hear slogans, spin and self-congratulation – but not the truth. Don’t be fooled. Behind the spin lies a dangerous economic gamble that risks the country’s financial future.”
Watch live coverage of the spending review on Sky News from 12pm
A 76-year-old man has been arrested on suspicion of administering poison at a summer camp which led to eight children being taken to hospital, police said.
Police received reports of children feeling unwell at a summer camp in Canal Lane, Stathern, Leicestershire, on Monday.
Paramedics assessed eight children, who were taken to hospital as a precaution and have all now been discharged.
The suspect was arrested at the camp and remains in custody on suspicion of administering poison with intent to injure/aggrieve/annoy.
Detective Inspector Neil Holden said: “We understand the concern this incident will have caused to parents, guardians and the surrounding community.
“We are in contact with the parents and guardians of all children concerned.
“Please be reassured that we have several dedicated resources deployed and are working with partner agencies including children’s services to ensure full safeguarding is provided to the children involved.
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“We also remain at the scene to carry out enquiries into the circumstances of what has happened and to continue to provide advice and support in the area.
“This is a complex and sensitive investigation and we will continue to provide updates to both parents and guardians and the public as and when we can.”
The force said it has referred itself to the Independent Office for Police Conduct (IOPC) over what it said was the “circumstances of the initial police response”.
There is no evidence that malign activity was responsible for yesterday’s outage of air traffic control systems, the transport secretary has said.
Heidi Alexander said she has spoken with the chief executive of National Air Traffic Service (NATS), Martin Rolfe, and added that what happened was an isolated incident.
NATS has apologised for the IT problems after thousands of passengers suffered extensive travel disruption during one of the busiest times of the year.
The technical glitch led to more than 150 flight cancellations, leaving airlines reacting furiously.
Image: Transport Secretary Heidi Alexander
Ms Alexander wrote on X: “I have spoken with NATS CEO Martin Rolfe who provided further detail on yesterday’s technical fault.
“This was an isolated event and there is no evidence of malign activity.
“I know that any disruption is frustrating for passengers.
“Flights are now resumed and I am grateful to airlines who are working hard to get people to where they need to be.
“I will continue to receive regular updates. Passengers should check with airlines before travelling.”
Officials said a “radar-related issue” caused the air traffic control failure.
A spokesperson for NATS said: “This was a radar-related issue which was resolved by quickly switching to the back-up system during which time we reduced traffic to ensure safety.
“There is no evidence that this was cyber related.”
The problem occurred at NATS’ control centre in Swanwick, Hampshire, and affected the vast majority of England and Wales.
Aviation analytics company Cirium said 84 departures and 71 arrivals were cancelled to or from UK airports up to 10pm on Wednesday, with several flights diverted to other European airports.
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5:06
Travel expert Paul Charles: This is a major outage
There was limited disruption on Thursday, with a handful of British Airways flights cancelled because aircraft and crew were out of position.
Heathrow and Gatwick airports said they had resumed normal operations.
Affected passengers are unlikely to be entitled to compensation as the disruption was outside of airlines’ control, but they will be able to claim expenses for a reasonable amount of food and drink, a means to communicate and overnight accommodation if required.
Image: Martin Rolfe in 2023. Pic: PA
Ryanair has called on Mr Rolfe to resign, claiming “no lessons have been learnt” since a similar systems outage in August 2023.
The airline’s chief operating officer Neal McMahon said: “It is outrageous that passengers are once again being hit with delays and disruption due to Martin Rolfe’s continued mismanagement of Nats.”
Airlines have reacted furiously after a technical glitch in air traffic control systems led to more than 150 flight cancellations.
The National Air Traffic Service (NATS) has apologised for the IT problems – and said systems were back up and running 20 minutes after the “radar-related issue” was detected at 4.05pm.
But with thousands of passengers suffering extensive travel disruption, during one of the busiest times of the year, airline executives have warned this isn’t good enough.
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1:01
Departures resume after ATC problem
Ryanair’s chief operating officer Neal McMahon has called for NATS chief executive Martin Rolfe to resign – and claimed Wednesday’s incident was “utterly unacceptable”.
He said: “It is outrageous that passengers are once again being hit with delays and disruption due to Martin Rolfe’s continued mismanagement of NATS.
“It is clear that no lessons have been learnt since the August 2023 NATS system outage, and passengers continue to suffer as a result of Martin Rolfe’s incompetence.”
Mr McMahon was referring to a glitch that affected more than 700,000 passengers two years ago – and said that, if Mr Rolfe refuses to step down, the government should intervene.
“Heidi Alexander must act without delay to remove Martin Rolfe and deliver urgent reform of NATS’ shambolic ATC service, so that airlines and passengers are no longer forced to endure these preventable delays caused by persistent NATS failures,” he added.
The Department for Transport says Ms Alexander does not have any direct control over NATS – and no powers over staffing decisions at the service.
Image: Martin Rolfe in 2023. Pic: PA
EasyJet’s chief operating officer David Morgan added: “It’s extremely disappointing to see an ATC failure once again causing disruption to our customers at this busy and important time of year for travel.
“While our priority today is supporting our customers, we will want to understand from NATS what steps they are taking to ensure issues don’t continue.”
NATS is yet to comment on the calls for Mr Rolfe’s resignation – but has stressed that the glitch is not believed to be “cyber related”.
“This was a radar-related issue which was resolved by quickly switching to the back-up system during which time we reduced traffic to ensure safety,” a spokesperson had said.
Departures at airports across the country have now resumed – but passengers are being urged to check with their airline before heading to terminals.
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5:06
Travel expert: This is a major outage
John Carr, from Stourbridge, was on his way from Heathrow to Norway to help arrange his brother’s wedding when he discovered his flight was cancelled after checking in.
“I’m pretty gutted,” he said. “We’ve got loads of stuff in the suitcases to set up the venue, because we’re obviously flying to Norway. We’ve got the wedding rehearsal to do. It’s quite stressful.”
Liberal Democrat leader Sir Ed Davey called for an urgent investigation and also referred to the “utterly unacceptable” disruption two years earlier.
“With thousands of families preparing to go on a well-earned break, this just isn’t good enough. The public deserve to have full confidence in such a vital piece of national infrastructure.”
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Airlines may have to provide compensation, although there are exemptions for “extraordinary circumstances”, according to the UK’s Civil Aviation Authority.