We’re braced.
Much to the ire of the Speaker of the House of Commons, Government announcements appear to be shared with journalists and stakeholders before Parliament at the moment.
So, in advance of tomorrow’s Spending Review, we already know a little about what the future hold for government spending on day-to-day running costs and investment. But why is the Review of interest when it is the Budget which normally attract significant coverage?
The Spending Review this week will set out day-to-day expenditure for the next three years and investment spending for four years ie until the next election.
In Cumbria what Rachel Reeves says will set the tone for the county for the next few years at a time when all sectors are looking closely at the bottom line as well as scanning the horizon.
From tourism to engineering, farming to finance, the measures set out on Wednesday will affect us all.
For example last week’s Strategic Defence Review revealed a lengthy shopping list for the armed forces. New submarines, drones and other kit won’t be cheap.
Defence spending will rise from 2.3% of gross domestic product (GDP) to 2.5% by 2027 which represents an increase of around an extra £5bn a year.
For Cumbria’s defence industry the news was welcomed.
The government has said this will be paid by cutting the overseas aid budget but will it be enough?
There’s real pressure from Europe on the UK to increase defence spending still further than the 3% ministers have set out.
Controversial cuts to winter fuel payments will be reversed for some. The Chancellor has already confirmed a U-turn on the Government’s controversial decision to limit the payments to those receiving means-tested benefits.
The NHS could benefit from more investment but it may well come with a caveat to make savings. Integrated Care Boards may be well be changed.
Free school meals will be expanded to 500,000 children whose parents are receiving Universal Credit, regardless of their income while it’s claimed day-to-day spending in education will rise by £4.5bn a year by 2028-29.
When it comes to transport, there’s good news if you’re a regular visitor to Greater Manchester, the Midlands and Tyne and Wear, where new infrastructure will be provided.
Cumbria’s MPs have lobbied for a share here; last week the Whitehaven and Workington MP Josh McAlister said: ‘A major upgrade of the Energy Coast Rail Line is critical to our success in West Cumbria and delivering it is a top priority for me.’
We’ll be listening out to see if this or the improvements to the A66 get the nod.
Finally nuclear may well have support in the statement with the Chancellor rumoured to be considering detailed plans to build small modular reactors (SMRs) mini nuclear power stations in England and Wales.
In a blog for Britain’s Energy Coast, chief executive Dianne Richardson points out that while others have metro mayors waving a flag in Whitehall for their areas, Cumbria is not yet in the same position.
“…there are now meetings the government has with mayors where areas like ours, who haven’t yet made the change, aren’t present. If you’re not even in the room, never mind at the table, how do you make your case for money to drive change and growth in your area?”
Assuming councillors and the Government agrees, Cumbria could have a mayor this time next year but, as Dianne points out, with the review covering the next three years, that will come too late to influence spending until 2028.
“I can’t help feeling we’re once again on the back foot here in Cumbria,” she says.
For business more widely, Cumbria’s Chamber of Commerce is joining chambers nationally in urging the Government to focus on three main areas.
“It must promote consistent investment in people, in infrastructure and in trade,” Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said. “If it provides the support businesses need to thrive, in an increasingly competitive and protectionist global market, then the future can still be bright.”
For reaction and analysis of what does emerge tomorrow look out for a special edition of Northern Lights, Business Crack’s podcast. Dianne and a host of experts in their field will join us to dissect and offer their views on what the statement will mean for Cumbria. Subscribe now to be the first to know.
