Today’s spending review signals a Labour government moving into action mode, writes Jonathan Ashworth

11 June 2025, 15:48 | Updated: 11 June 2025, 15:51

By Jonathan Ashworth

Yes, there was familiar reference to the dire economic inheritance and Tory £22billion blackhole, but today the chancellor began singing a new tune.

‘The renewal of Britain must be felt everywhere’ she told the Commons.

Today, Rachel Reeves was delivering an unashamedly Labour message of investment across regions too often neglected by Westminster.

It’s something we at Labour Together, alongside ‘Red Wall’ MPs like Jo White have long been calling for.

There was rightly no diluting of her iron fiscal rules. Stability must always come first.

There won’t be any repeat under Labour of the Tory Truss experiment that sent mortgages soaring.

It beggars belief that Nigel Farage wants to repeat that barmpot experiment all over again.

His Deputy, Richard Tice, meanwhile, wants to slash spending to 35 per cent. That means deep swingeing cuts to public services.

Instead, Labour’s tough rules that guide decisions are designed to both protect mortgage payers as far as possible while allowing Labour to allocate cash to tackle the dilapidation of such much of our public realm.

That's meant today heavy duty spending in new rail projects, in energy infrastructure to bring down bills and in new technology like AI and science research.

This is a wise investment that will stimulate growth, create well paid jobs putting more money in pockets and funds the much needed industrial revival of Britain.

And without doubt the U.K. is desperate for sustained economic expansion. Growth has been anaemic these past 15 years.

It’s left our economic performance in the doldrums with living standards squeezed, taxes high and the millstone of large government debt. It’s why raising economic growth is the central preoccupation and driving mission of the government.

Today the Labour government set out a serious to deliberate that mission. This was Rachel Reeves’ choice as she markedly references umpteen times in her forty-five-minute speech.

In contrast, Tory shadow ministers who carp from the sidelines now stand exposed as having no plan for the future of the country.

Talking of the nation’s future, it’s welcome Rachel Reeves recognised the importance of giving every child the best start in life. Hungry children will be better able to concentrate on their schooling with the advantage of free hot lunch in their tummies.

But Labour MPs will be pushing the Chancellor to go further later in the year when she unveils her child poverty strategy. Vicious rules in the child benefit system that push kids into destitution are reportedly being looked at. Rightly so.

The chancellor told MPs this was a Spending Review to strengthen our security and improve our health.

Defence and the NHS were accordingly the big winners with bumper increases.

Under Labour, defence spending rises to 2.6% of GDP by April 2027 - the biggest sustained increase in defence spending since the Cold War.

The NHS will benefit by billions more every year to help bring waiting lists down and ensure patients receive the quality care they deserve.

The extra cash will help oversee a programme of investment and reform using new technology, especially to deliver the extra appointments and procedures needed.

But there remain tough choices ahead.

Anyone caring for a loved one living with dementia knows how inadequate the social care system is. We all await the outcome of the government’s social care review.

Local councils will still face grinding pressures when delivering vital services that so many of the vulnerable rely on.

But overall, this was the start of rebuilding Britain after 14 years of Tory austerity, neglect and chaos.

The next general election isn’t until 2029, but the battle lines are coming into focus. Investment, reform and raised living standards with Labour or cuts, mortgage misery and chaos under the Tories and Reform. That’s a fight Keir Starmer will be happy with.

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