- Chancellor Rachel Reeves is expected to announce changes to the government's spending assessment process to favour the north and Midlands, potentially unlocking tens of billions of pounds for investment in these regions.
- The spending review aims to shift focus from the southeast to 'red wall' seats that Labour won in the last election but are now threatened by the Reform UK party.
- Reeves previously tweaked fiscal rules in last year’s Budget, freeing up a £100 billion pot for infrastructure investment, with the changes designed to ensure the benefits of investment are considered alongside the costs.
- The government's Green Book, which assesses project costs and benefits, will be reviewed to prioritise public sector investment in areas with lower economic productivity.
- This red wall investment drive follows pressure from Labour MPs to allocate more funds to the north and Midlands, as the party seeks to counter the rising support for Nigel Farage's Reform UK.
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