Chancellor Rachel Reeves MP has set out her spending review in the House of Commons this afternoon. It outlines how much funding individual government departments will receive over the next three years and state infrastructure investment for the next four years. The Chancellor said the government’s priorities are health, security and the economy.
The last spending review took place during the COVID-19 pandemic, and before that, in 2015.
The Chancellor labelled the review as: “we are renewing Britain. In place of chaos, I choose stability, in place of decline, I choose investment. I choose national renewal.” She stated it was a zero-based review with a line-by-line assessment on what the government spends and she is raising the cash from driving out inefficiencies and selling off government land and buildings and from ending the loophole on VAT on private school fees.
Managing Partner, Tony Bullock’s reaction: “This is ludicrous, huge spending pledges with no way of paying for it. It’s a spend now and tax later spending review and it’s very worrying. We will have a summer of speculation as we await the Autumn Budget and we must be in no doubt that taxes will have to increase to pay for this.
“Simply, there are two options to pay for all of this, either increase the national debt or come the Autumn we have to expect huge tax increases.
“This may look like great news for those benefitting from the spending, but it is not good news for the taxpayer in the coming months. The only way to pay for this is increasing taxes. Just selling off a few government buildings, will be a drop in the ocean in terms of paying for this. The burden will fall on us, businesses and individuals.”
Set against a very challenging economic backdrop, here’s an overview of the spending announcements:
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Chancellor Rachel Reeves MP has set out her spending review in the House of Commons this afternoon. It outlines how much funding individual government departments will receive over the next three years and state infrastructure investment for the next four years. The Chancellor said the government’s priorities are health, security and the economy. The last spendi...
DUTTON MOORE congratulate Jack on recently obtaining a High Achiever Award and an Accountancy Award through his hard work and dedication. The awards were presented to Jack from Wyke College who commented: “Jack proved himself to be an extremely hardworking and committed student of Accountancy throughout the 2 years of the course. He conti...
A round-up of todays’ first Labour Budget from Chancellor Rachel Reeves, from Tax Partner Colin Hamilton... Today’s Budget sees one of the largest increases in tax and spending in recent history. It represents the Labour governments vision of Big Taxes / Big Spending / Big Borrowing in response to a perceived £22B ‘financial black hole’ and the need to re...