Faisal Islam: This is not a quick fix but that's the point
Rachel Reeves's key choice in this Spending Review is to prioritise long-term investment over day-to-day spending. Within that, some cash will be routed to the Midlands and the North of England rather than London.And against tight limits on day-to-day spending, the chancellor chose to funnel funding towards health.These are important strategic reprioritisations. The key judgements are longer term.You will not be riding on these railways, or getting energy from new nuclear plants in this Parliament. It will take a few years to see the inside of a newly-subsidised social house. There are no quick fixes to many years of under-investment.For Reeves this was the culmination of a planned strategy from the important technical changes she made to her borrowing rules at last year's Budget.The existence of this extra £113bn capital spending arises from that decision, and it is borrowed money.
Seven ways the Spending Review affects youWhat has the chancellor has announced? The key pointsWatch: Where the money is being spent
All of this has added to the pressure on day-to-day spending in the final years of the Parliament.Some of those spending settlements look very tight indeed set against growing expectations and demands in education and local councils.A return to a reasonable rate of economic growth is not just the aim of these plans, it is required to make them credibly add up in later years.The pattern of spending appears to suggest a hope or an expectation that the numbers will be replenished later, assuming that growth will pick up.Achieving that will require not just effective and efficient government spending on these major long-term projects, but sufficient confidence and vision to get the private sector to pour its money into similar plans.So this will not instantly transform the country, the state of roads, hospitals and schools, or the provision of services within them. But with a still healthy parliamentary majority, the chancellor has some time.There is a pathway here to a more balanced, sustainably-growing economy. Indeed, faster growth will be needed to make the Budget numbers add up.
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The Sun
27 minutes ago
- The Sun
Kneecap rapper wears Palestine Action ‘terror group' T-shirt ahead of controversial Glasto set that BBC WON'T show live
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Telegraph
28 minutes ago
- Telegraph
Our welfare system needs reform, not arbitrary cuts
As the smoke settles from yet another astonishing tyre-screeching U-turn by Kier Starmer on his welfare proposals, the stark reality is that instead of significant savings, we will all now face an extra tax bill of £3bn in the autumn. This U-turn isn't surprising to me because their proposal was a classic panicky short-term Treasury driven cut but in no way genuine reform. I even doubt that the savings would in the longer term have materialised. This is because I believe they were going at it the wrong way. The Covid lockdowns blasted a hole in our welfare system. Since 2020, the number of households where no one has ever worked has doubled. Economic inactivity due to long-term sickness has risen by 800,000. And taxpayers today are shelling out an extra £30 billion every year on sickness and disability benefits, on top of an already bulging bill. Lockdown reversed much of the progress we had made under the transformations of Universal Credit, in part relaxing eligibility rules and assessments for benefits, a leniency that astonishingly continues to this day. But also expanding the 'claim culture', albeit inadvertently, through schemes like furlough. It is easy to forget that by 2019 we had the lowest rate of workless households on record. Clearly, we have to get a grip. But solving this problem will take thought, courage and time. The Government's proposals are rushed in order to be 'scored' by the OBR in time for the Spring Statement. In a panic, the Treasury opted to simply top-slice spending by raising the threshold for disability benefits across the board. This leads to some deeply concerning outcomes. According to the Department for Work and Pensions (DWP), three in four Personal Independence Payment (PIP) claimants with arthritis, two in three with cardiovascular disease, and even a third with cancer could lose support. Yet there is another way, one which focuses on the root causes of the crisis. But that must start with a grown-up conversation about mental health. Monthly PIP claims have more than doubled, driven in large part by a threefold increase in people citing mental health conditions. Meanwhile the majority of people on Universal Credit receiving health-related top-ups now also report poor mental health. Tragically, it is disproportionately young people fuelling this rise, those most likely to suffer the mental and emotional consequences of being out of work. And yet it is the system itself that is driving worklessness and dependency. Of course, PIP eligibility does not require someone to be out of work. Yet five in six recipients are. Taken in the round, once you tot up all the various benefits, the system has tilted towards incentivising ill health rather than supporting recovery. There is another way. New research from the Centre for Social Justice (CSJ) shows that better targeting of mental health benefits – focusing help to those with more serious conditions – could save the Government up to £9 billion. A more humane and sustainable approach to reform would recognise that, for many people with anxiety or depression, ensuring proper treatment is much more compassionate than parking them on benefits and slamming the door to an independent life. First, the government could use the savings to fund a £1 billion investment in NHS Talking Therapies, expanding 1.5 million additional treatment courses. CSJ polling also finds that nearly half the public believe people with less severe conditions should be supported through programmes and services, compared to one in five saying cash. Second, the Government should accelerate the rollout of Universal Support, originally launched by the last Conservative government and now rebranded as Connect to Work. This scheme works with the local charities and community organisations best placed to help people who are furthest from the workforce. These inspirational people are already on the ground, collaborating with employers to tackle the most difficult barriers to work, whether family breakdown, debt, addiction, and poor health. Finally, for the first time, sickness benefit is being brought into Universal Credit as I had designed originally. The DWP now has powerful tools Universal Credit provides. The NHS has made it clear that for depression and anxiety, the largest new claimant group, work is a health treatment. Yet far too many people were left on sickness benefit with no meaningful contact. Many who were off work for health reasons received no time with a work coach at all. Now under Universal credit that can change. The system should be doing more – using AI to free up work coach time – to increase the contact time with claimants and not leaving them parked on the sidelines. Our welfare system needs reform, not arbitrary cuts. I understand the pressure Liz Kendall is under. But short-term fixes risk doing lasting damage. We need a system that treats people with compassion while actively supporting them to recover and return to work. That's how to reduce dependency, control costs, and rebuild lives.
Scotsman
32 minutes ago
- Scotsman
Amazon's £40bn expansion brings 1000s of jobs: what it means
Amazon's investment will bring cutting-edge tech, better wages, and fresh career opportunities to the UK 🌍 Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Amazon is investing £40 billion in the UK over the next three years, boosting regional growth New fulfilment centres in Hull and Northampton will create at least 4,000 jobs by 2026 Two more warehouses planned for the East Midlands in 2027 will add thousands more roles Investment also includes upgrades to data centres, tech like drones, and Amazon's London HQ The move supports the government's 'levelling up' agenda, spreading innovation outside London Amazon is making a bold bet on Britain's regions, announcing a landmark £40 billion investment aimed at creating jobs and fuelling economic growth far beyond the traditional powerhouses of London and the South East. At the heart of the expansion are four new fulfilment centres – including confirmed sites in Hull and Northampton – which will bring at least 4,000 new roles by 2026. Advertisement Hide Ad Advertisement Hide Ad Two more large-scale warehouse facilities are planned for the East Midlands in 2027, likely adding thousands more jobs, though the exact locations remain under wraps. But this isn't just about warehouses. Amazon's investment, which spans the next three years, also includes billions in data infrastructure, cutting-edge technologies like drones and robotics, improvements to staff wages and benefits, and a major upgrade to its London headquarters in Shoreditch. (Photo:) | Getty Images The scale and spread of the spending signals a new chapter in Amazon's UK strategy – one that aligns with the government's 'levelling up' agenda and sends a strong message to global investors: Britain, post-Brexit and amid political change, is still a key destination for innovation and growth. Prime Minister Sir Keir Starmer called it a 'massive vote of confidence in the UK,' while Chancellor Rachel Reeves described it as a 'powerful endorsement of Britain's economic strengths.' Advertisement Hide Ad Advertisement Hide Ad Amazon CEO Andy Jassy emphasised the company's commitment to reaching every corner of the UK. He said: 'When Amazon invests, it's not only in London and the South East – we're bringing innovation and job creation to communities throughout England, Wales, Scotland, and Northern Ireland.' What does it mean for the UK economy? With more than 75,000 already on its payroll, Amazon is one of the UK's largest private sector employers. Advertisement Hide Ad Advertisement Hide Ad This new injection of funding not only strengthens its logistics network but also helps build long-term regional resilience by introducing high-tech jobs, skills training, and digital infrastructure in under-served areas. For Hull, Northampton, and the East Midlands, it means more than just jobs – it could mark the beginning of a deeper transformation, bringing global tech investment into areas historically overlooked. As the UK economy seeks stable ground and sustainable growth, this investment could provide a much-needed anchor. Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.
