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RACHEL Reeves is set to unveil an enormous spending spree, including bringing back winter fuel payments for millions of pensioners.
The chancellor is expected to also commit funds for free school dinners and defence in her spending review later today.
Her announcement will explain how roughly £600bn will be spent over the next few years, but there have been varying reports of what exactly Ms Reeves will include.
It’s important to note that spending reviews are different to budgets – with the chancellor’s statement showing how the government intends to spend, rather than explain the state of the nation’s finances.
Last week, it was confirmed that police chiefs would have an increase to their budgets, after battling with the chancellor over fears of cuts to services.
And, in perhaps the biggest U-turn for this government so far, nine million pensioners will now receive winter fuel payments this year – after they were controversially axed last July.
Spending reviews typically take place every few years, and we will find out exactly what Ms Reeves has committed funds for when she makes her announcement in the House of Commons at around 12.30pm today.
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NHS ‘won’t hit target’
The NHS is not expected to hit Sir Keir Starmer’s waiting list target despite a budget boost of around £30billion, according to modelling.
Rachel Reeves will today announce an annual real terms increase of 2.8% for the health service.
Starmer has promised the NHS will hit a routine operations target of treating 92% of patients within 18 weeks – something not met for 10 years.
However, internal Department of Health modelling shows the service is on course to hit just 80% by the end of parliament, reports The Times.
Officials say the figures can only come close to 92 per cent by using “implausible” and “over-optimistic” assumptions.
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More border cops and drones
Ms Reeves will throw hundreds of millions of pounds at fixing Britain’s broken borders — including more drones to snare migrants.
The £680million cash boost comes as ministers scramble to reduce the £4million being spent every day on accommodation for those who manage to cross the Channel in small boats.
Ms Reeves and Home Secretary Yvette Cooper put on a united front following days of fraught negotiations over today’s spending review — insisting border security is a priority.
Migrants board a boat from France bound for Britain -
Housing
Housing Secretary Angela Rayner has been arguing for much more cash to build more social homes.
She only settled with the Treasury over the weekend after playing hardball for a bigger funding.
Ms Rayner is also trying to secure more funding for local authorities tasked with building 1.5million more homes by 2030.
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Nuclear
The Sizewell C nuclear plant will be given the green light in a £14 billion investment – the first to get the go-ahead in thirty years.
Ten thousand jobs and 1,500 apprentices will help construct the Suffolk site but it won’t come on stream for at least another decade.
Several small reactors known as “mini-nukes” will be built with the government backing the first one with a design by Rolls-Royce.
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NHS boost
The NHS will be a big winner with £30 billion rise in its day-to-day spending.
Health Secretary Wes Streeting is understood to have initially asked for a 4 per cent hike but will settle for 2.8 per cent.
But infrastructure spending in the health service will remain flat despite NHS managers demanding better buildings and improved IT systems.
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Defence
Defence Secretary John Healey is set to be one of the big winners from the Spending Review – having been promised 2.5 per cent of GDP by 2027.
The MoD budget will also rise to 3 per cent at some point after the next election, with the ambition to hit the target by 2034.
It will be paid for by slashing the spending on overseas aid.
But Ms Reeves is under pressure to go even further on defence spending, with both Donald Trump and NATO boss Mark Rutte pushing for 5 per cent of GDP.
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Trams and buses
A £15 billion pot for funding local transport links in the north of England and the Midlands has so far been set out.
Trams will be at the heart of the cash boost with investment into the systems in Greater Manchester. New bus stations will be built in Bradford and Wakefield.
London Mayor Sadiq Khan is already said to be furious that the capital will miss out on big spending projects to improve transport links.
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Police
One of the thorniest issues has been the funding settlement for the police, sparking a behind-the-scenes row with Home Secretary Yvette Cooper.
Top cops have been demanding more money to fight crime and monitor the increasing number of prisoners freed early.
It has seen Ms Cooper locked in furious talks with the Chancellor that went right down to the wire and only resolved on Monday night.
The Sun understands that she has secured a real-terms increase for the police, however tomorrow we will discover the extent of that hike – and whether senior officers are happy.
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Free school meals
Children whose parents receive universal credit will be able to claim free school meals from September 2026 helping more than 500,000 pupils.
But teachers will find that their school budgets will be tightened as schools will have to fund about a quarter of their 4 per cent pay rises themselves.
Schools will be on the hook for around £400 million to stump up for the hikes as department money won’t cover the rise.
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Winter fuel
Rachel Reeves has already announced a humiliating u-turn on winter fuel payments and will restore the £200-£300 sum to nine million pensioners.
She revealed the screeching retreat – that will cost £1.25billion – ahead of tomorrow’s Spending Review.
But the about-term came without details of how it would be paid for, with the Chancellor only pledging not to plug the hole with more borrowing.
Critics have warned this could see taxpayers pick up the bill with a fresh raid at the next Budget in the autumn.
