Reports indicate that the armed forces are set to receive a £3 billion funding increase as Rachel Reeves gets ready to present the first Budget of the UK Labour government.
In her fiscal statement in the Commons, the Chancellor is expected to announce a rise in the defence budget for the upcoming year, part of which will be allocated for a pay raise for soldiers, retroactive to April, according to the Telegraph.
This funding will also contribute to purchasing weapons, aimed at replenishing the stockpiles that have been diminished by donations to Ukraine.
However, the proposed pathway for elevating defence spending to 2.5% of national economic output, as demanded by the Tories, will not be included in the Budget.
During her address, she is anticipated to proclaim that the “prize on offer” is “immense”, outlining new funding initiatives to reduce hospital waiting lists, facilitate the construction of more affordable homes, and reconstruct deteriorating schools.
She is expected to add: “More pounds in people’s pockets. An NHS available when you need it. An economy that is expanding, generating wealth and opportunities for everyone. Because this is the sole method to enhance living standards.”
Reflecting on the Labour administrations of Mr. Attlee, Mr. Wilson, and Mr. Blair, Ms. Reeves will state that it is “not the first time it has fallen to the Labour Party to rebuild Britain”.
The UK Prime Minister, Keir Starmer, and Chancellor Rachel Reeves aim for the Budget to revitalize Britain.
The Chancellor has cautioned that the tax increases and borrowing changes she is contemplating may not suffice to remedy “14 years of damage” to the NHS, despite intentions to inject billions into the healthcare system.
In conjunction with its Budget analysis, the fiscal watchdog Office for Budget Responsibility (OBR) will release a report detailing the legacy of the Conservatives during their time in government, which is expected to address the so-called £22 billion “black hole” in public finances.
Shadow Chancellor Jeremy Hunt is challenging the report, asserting in a letter to senior civil servant Simon Case that the OBR may be “straying into political territory and failing to follow due process”.
Other updates related to the Budget include:
– A confirmed 6.7% increase in the minimum wage, raising it to £12.21 per hour next year.
– Additional funding for the NHS, which includes £1.5 billion for new surgical hubs and scanners, alongside £70 million for radiotherapy machines.
– Potential increases in taxes such as fuel duty, inheritance tax, and capital gains tax are reportedly being considered.
– Labour has committed to not raising the headline taxes on the incomes of “working people”: national insurance, VAT, and income tax.
– Ms. Reeves hinted in the Commons that reforms to business rates may be forthcoming, “as well as a business tax road map.”
– Earlier this week, Keir Starmer revealed that £240 million in funding for local services will be directed towards assisting people in returning to work.
– The existing £2 cap on bus fares throughout England will increase to £3.
