Displaying items by tag: Government

Rachel Reeves’ new spending review represents a pivotal moment for the Labour government, aiming to launch a narrative of 'renewal' after a challenging first year. With £600 billion allocated over four years, the review balances significant capital investment with modest growth in day-to-day departmental spending. Major announcements include £14.2 billion for nuclear power at Sizewell C, £15 billion for public transport in the North and Midlands, and a new rail link between Liverpool and Manchester. An additional £113 billion in capital spending will target the government's three pillars: health, security, and the economy. However, this largesse will be offset by tighter controls on daily budgets, with unprotected departments - particularly the Home Office and local councils - facing real-term cuts. Discontent is rising over pressure to reverse disability cuts, lift the two-child benefits cap, and increase winter fuel support. While Reeves insists the rises are funded by tough tax decisions, growing public dissatisfaction may force further fiscal changes by autumn. The Government hopes visible investment projects will reassure voters and build lasting trust. Breaking news: the UK economy shrank by 0.3% in April, a worse result than expected, which Reeves has described as ‘disappointing’. See

Rachel Reeves has confirmed a £14.2bn investment for the new Sizewell C nuclear power station in Suffolk, projected to begin supplying power by the mid-2030s. She hailed it as the dawn of a 'new era of nuclear power’, with the plant expected to power six million homes and create thousands of construction jobs. Keir Starmer emphasised fiscal caution, warning there will be no 'blank cheque' for the decade-long project, with the current funding covering only four years  The plant, to be built  by EDF, sits on an existing nuclear site and comes amid efforts to replace Britain’s ageing nuclear infrastructure. The government also announced a £2.5bn programme for small modular reactors (SMRs), touted as quicker to build and better suited for decentralised energy needs. Though some locals welcome the investment, others decry environmental destruction near the RSPB Minsmere reserve. The Scottish government remains opposed to new nuclear developments. The overall goal is to expand UK nuclear capacity to around 24GW by 2050 to secure clean and reliable electricity.

Rachel Reeves has announced that more pensioners will qualify for winter fuel payments this year, following the backlash over Labour’s 2024 decision to cut the benefit for most retirees. While she confirmed the means-test threshold will rise, she did not specify by how much, and at Prime Minister’s Questions, Keir Starmer also failed to clarify how many of the ten million affected pensioners will regain eligibility. Labour’s original decision to means-test the payment reduced eligibility from 11.4 million to just 1.5 million, limiting it to pensioners receiving benefits like Pension Credit. The move, intended to save £1.5 billion annually, was part of an effort to address what Labour calls a £22 billion fiscal gap left by the previous government. Critics, including Kemi Badenoch, accused Labour of lacking preparation and transparency. Reeves insisted the government remains committed to easing winter costs for vulnerable seniors but acknowledged that specifics are still being finalised.

Starting in September 2026, all children in England whose parents receive Universal Credit will be eligible for free school meals, regardless of income. This change, announced by the Government, is expected to benefit around 500,000 more pupils and save families up to £500 a year. Education secretary Bridget Phillipson said the initiative will help lift 100,000 children out of poverty, though some analysts cast doubt on that figure. Currently, free school meal eligibility is limited to families earning under £7,400 annually. The reform marks a major shift and is part of a broader strategy to address child poverty. However, the Government faces pressure to go further - especially regarding the two-child benefit cap. While many charities and education leaders welcomed the move as a vital step, they stressed the need for automatic enrolment and additional support to ensure no child goes hungry. £1 billion has been set aside to fund the change up to 2029, with further announcements expected in Rachel Reeves’s forthcoming spending review.

Labour MPs are warning of a brewing rebellion over government plans to deepen cuts to the welfare budget this autumn. Keir Starmer and Rachel Reeves face growing dissent after announcing in March a £5 billion reduction in benefits, with additional cuts reportedly under consideration. The proposals, which include tightening eligibility for personal independence payments (PIP) and cuts to universal credit, have sparked concerns across the party. Backbenchers and activists report rising public anger, especially following poor results in local elections and the Runcorn by-election. Critics warn that further cuts could drive more people into poverty, particularly affecting disabled individuals and communities already struggling with high rates of benefit dependence. Two Labour MPs have vowed to oppose the reforms, emphasising the party’s responsibility to protect society’s most vulnerable. Disability advocates, arguing that the cuts prioritise financial savings over people’s wellbeing, are urging the Government to reconsider. Ministers, however, insist reforms are necessary to sustain the welfare system for the future.

A scathing new report from the Climate Change Committee (CCC) warns that government efforts to protect people and infrastructure from the impacts of climate change are dangerously inadequate. The report found that of 46 key adaptation measures, none are rated ‘good’, and progress has been glacial or even regressive. Despite climate threats already affecting homes, farmland, railways, schools, and hospitals, adaptation remains a low priority. Forecasts show that by 2050, over half of England’s best farmland and critical infrastructure will be at flood risk, while heat-related deaths could exceed 10,000 annually. Businesses, farmers, and scientists are calling for urgent action, stressing that ignoring adaptation now will bring national security risks and economic costs. The Government may claim that it is prioritising climate resilience, but budget cuts - including to flood defences - cast doubt. Experts, pointing to successful models abroad, are urging clearer targets, better planning, and private sector engagement to prevent worsening climate disasters.

Over ten thousand asylum-seekers have crossed the English Channel in small boats so far in 2025 - an increase of 40% compared to the same period in 2024. The rise has intensified political debate over border security and asylum reform. Labour, now in government, has pledged to dismantle people-smuggling networks, treating smugglers like terrorists under a new proposed bill. Measures include a new criminal offence of endangering the lives of others at sea, and imposing travel bans and communication restrictions on suspects. The Home Office says 5,400 migrant attempts have been thwarted this year, and over 24,000 individuals without legal status were removed between July 2024 and March 2025. Opposition parties blame both Labour and the previous Conservative government for policy failures. Reform UK calls for strict deportations, while the Green Party wants to see legal safe routes for asylum-seekers. As the crisis escalates, public frustration grows, with leaders divided over whether deterrence or compassion should define immigration policy.

The Government borrowed £151.9 billion in the year to March, up £20.7 billion from the previous year, raising concerns about the nation’s financial stability. The figures, revealed as Rachel Reeves visits Washington to negotiate a trade deal with the USA, come amid mounting pressure to cut public spending or increase taxes in order to meet her strict borrowing rules. Reeves has insisted that borrowing will not fund daily spending, but economists warn that sluggish growth, rising interest rates, and looming US tariffs could force her hand. Economists predict tax hikes may be necessary, especially if a trade agreement with the USA cannot be reached. Meanwhile, the IMF downgraded the UK’s 2025 growth forecast from 1.6% to 1.1%, citing inflation, borrowing costs, and trade disruptions. Despite higher tax revenues, debt interest rose to £4.3 billion in March, the highest since the 1960s. Both political and economic leaders are scrutinising every area of government spending, while critics blame the borrowing spike on poor fiscal management and short-sighted policies.

Leading UK charities are urging Keir Starmer to urgently scrap the two-child benefit cap, warning it could push child poverty to record levels by the end of this parliament. A letter signed by organisations such as Barnardo’s, Save the Children, and Citizens Advice has told the Government that removing the cap is the most cost-effective measure to reduce poverty. The two-child limit, introduced in 2017, restricts child tax credits and universal credit to the first two children in most households. Critics argue this penalises larger families and disproportionately affects low-income homes. The End Child Poverty Coalition predicts the long-awaited child poverty strategy may not appear until June, while the Child Poverty Action Group estimates child poverty could rise from 4.5 million to 4.8 million children by 2029. Scrapping the limit could lift 350,000 children out of poverty overnight and lessen the severity for 700,000 more. While the Scottish government has pledged to mitigate the policy, nationwide reform remains uncertain and urgently needed.

A critical shipment of raw materials has arrived in the UK to keep British Steel’s blast furnaces in Scunthorpe operational. Following the breakdown of talks with Chinese owner Jingye, the UK government intervened, securing coking coal and iron ore from the US and Australia to prevent furnace shutdowns and potential irreparable damage. This action has brought  'huge relief' to workers and offered renewed hope for the plant’s future. British Steel is the UK’s last producer of virgin steel - vital for national infrastructure, defence, and the economy. Nearly three thousand jobs were at stake, and the government passed emergency legislation to secure operations while working on future ownership plans. Concerns mounted when Jingye ceased raw material orders and began selling existing supplies. Government ministers and union leaders stress the strategic importance of maintaining domestic steel production. Meanwhile, tensions with Beijing have escalated, with warnings that foreign ownership of essential industries must be carefully scrutinised. As the furnaces stay lit, questions remain about long-term stability and national control over vital infrastructure.