Announcement to MPs expected later this afternoon
Chancellor Rachel Reeves will tell MPs that the state of the country’s finances are worse than expected, with newspapers reporting over the weekend that a £20bn gap has been identified.
In an effort to avoid tax rises, Reeves is planning to scrap a series of major infrastructure schemes, including the New Hospitals Programme, the Stonehenge tunnel and other roads schemes.
According to The Times, she is also looking to sell off empty public buildings and reduce government spending on consultants.
Former Tory chancellor Jeremy Hunt has accused Reeves of being “beyond disingenuous” in claiming surprise at the state of the finances, pointing out that the Office for Budget Responsibility publishes its own assessment twice a year.
The Institute for Fiscal Studies also identified a similar sized gap after the budget in March.
Reeves’ announcement will come this afternoon and is also expected to outline plans for a new Office of Value for Money which is promising to put an end to wasteful spending in government, providing targeted scrutiny of public spending.
Meanwhile, housing secretary Angela Rayner said her “number one priority” was investment in social and affordable housing to “ensure everyone has a secure roof over their head”.
A major planning announcement is expected this week and Rayner said: “We will take action to inject confidence and certainty into the social housing system, so that councils and private providers can get back to building.”
The Ministry for Housing, Communities and Local Government is preparing to publish its reformed National Planning Policy Framework (NPPF).
The most recent NPPF was published only last December by then-housing secretary Michael Gove but the new Labour government will introduce fresh reforms with the aim of “kickstarting the sector out of this slump”.
The new framework, expected to be announced to MPs tomorrow, will detail plans for the government’s “strategic approach” to green belt development, which will prioritise so-called grey-belt land for building and introduce “golden rules” for development.
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