Rachel Reeves will set out her spending plans for the coming years on Wednesday as she unveils her spending review.
The review, which will set out day-to-day spending plans for the next three years and capital spending plans for the next four, is expected to see boosts for the NHS, defence and schools.
But it is also likely to involve squeezes for other departments as the Chancellor seeks to keep within the fiscal rules she has set for herself.
Her room for manoeuvre has also been further constrained by the Government’s U-turn on winter fuel payments, which will see the benefit paid to pensioners receiving up to £35,000 per year at a cost of around £1.25 billion to the Treasury.
The full details will be revealed in the Commons on Wednesday, but several announcements have already been made.
They include:
– £15.6 billion for public transport projects in England’s city regions;
– £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk;
– £39 billion over the next 10 years to build affordable and social housing;
– An extension of the £3 bus fare cap until March 2027;
– £445 million for upgrades to Welsh railways.
The Chancellor is also expected to announce changes to the Treasury’s “green book” rules that govern whether major projects are approved.
The Government hopes that changing the green book will make it easier to invest in areas outside London and the South East.
