{"id":291309,"date":"2025-06-13T18:54:36","date_gmt":"2025-06-13T18:54:36","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/reeves-to-lay-out-infrastructure-plan-targeting-labour-heartlands\/"},"modified":"2025-06-13T18:54:36","modified_gmt":"2025-06-13T18:54:36","slug":"reeves-to-lay-out-infrastructure-plan-targeting-labour-heartlands","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=291309","title":{"rendered":"Reeves to lay out infrastructure plan targeting Labour heartlands"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=a073eff2-e0dc-4934-8515-48fe833b37a1\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Chancellor Rachel Reeves will next week give more details of a \u00a3113bn capital spending spree with a 10-year infrastructure plan intended to boost growth in Labour\u2019s heartlands, as ministers geared up for a fight with the party\u2019s backbenchers over welfare cuts. <\/p>\n<p>The chancellor\u2019s allies say her spending review this week \u2014 which combined a squeeze on day-to-day spending with a big increase in capital investments \u2014 aimed to create a political platform for Labour at the next election.<\/p>\n<p>Reeves has told Labour MPs to \u201cgo out and sell\u201d the extra cash going to projects in regions including the north and midlands, as Labour\u2019s high command attempts to halt the rise of<a href=\"https:\/\/www.ft.com\/content\/f0fc0553-7a4e-463c-b269-da0d0b40860b\" data-trackable=\"link\"> Reform UK <\/a>in working class areas.<\/p>\n<p>While the package was generally well received by Labour MPs, Reeves is facing a fight with her colleagues on a different front, as mutiny builds over plans for \u00a35bn of benefit cuts by 2030.<\/p>\n<p>The chancellor hopes the goodwill engendered by the spending review will smooth the passage of the welfare reform bill, which will be introduced next week; any significant retreat would blow another hole in fragile public finances.<\/p>\n<p>\u201cWe\u2019ve given MPs a product to deliver on the doorstep,\u201d said one ally of Reeves, referring to the rolling programme of capital spending being deployed to towns and cities across the country.<\/p>\n<p>\u201cThe point was to have a coherent argument of what the economic strategy is \u2014 investment versus decline \u2014 but it was also a very political speech.\u201d<\/p>\n<p>Reeves\u2019 spending review was heavily criticised by Paul Johnson, the outgoing head of the Institute for Fiscal Studies, who claimed she had used \u201cbaffling\u201d data and was within a \u201cgnat\u2019s whisker\u201d of breaking her fiscal rules and requiring more tax rises.<\/p>\n<p>But one colleagues of Reeves said: \u201cThe fact that Paul Johnson didn\u2019t like it but Labour MPs did means that we succeeded in our job.\u201d One Labour MP said: \u201cIt felt like a reset.\u201d Another MP said: \u201cShe played a bad hand well.\u201d<\/p>\n<p>However dozens of Labour MPs are less happy about benefit cuts, with party whips trying to contain a rebellion over the welfare reform bill, which will be tabled next week before getting its crucial second reading in early July.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"05f62c99-b9d4-471a-8e2d-9bea7542301d\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/05f62c99-b9d4-471a-8e2d-9bea7542301d\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2048\/1152\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F14e5c784-c283-4419-a33f-8391d5760c1c.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"Montage of Rachel Reeves against a backdrop of falling polling data\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Work and pensions secretary Liz Kendall has offered an \u201colive branch\u201d to rebels by promising to write into law some of the proposals contained in a consultation paper to soften the blow on individuals, according to allies of Kendall.<\/p>\n<p>Under current plans, more than 370,000 people who currently claim disability payments known as \u201cpersonal independence payments\u201d will lose the benefit, but Kendall will guarantee they will continue to receive them for 13 weeks to help their transition into work.<\/p>\n<p>Kendall will also write into the legislation a commitment that benefit recipients with fewer than 12 months to live or with progressive and incurable conditions would automatically receive a higher rate of universal credit, without having to be reassessed.<\/p>\n<p>However Kendall\u2019s allies insist these are \u201cnot concessions\u201d, but are instead legal guarantees of proposals that are already under consultation. They argue that the substance of the package remain the same. <\/p>\n<p>A Labour rebellion still seems inevitable and the SNP\u2019s Kirsty Blackman, in a letter to prime minister Sir Keir Starmer, denounced what she called a \u201csqualid\u201d attempt to quell a mutiny and \u201can insult to disabled people\u201d.<\/p>\n<p>But Reeves is determined to stick to the \u00a35bn cuts programme, knowing that a retreat would leave her politically weakened and would further dent her fiscal programme. This week she performed a \u00a31.25bn U-turn over her winter fuel policy.<\/p>\n<p>The chancellor was in Wales on Friday, promoting a plan to spend \u00a3445mn on Welsh railways and \u00a3118mn on coal tips, although opponents in Wales said the country was being short-changed by the chancellor.<\/p>\n<p>Reeves\u2019 allies joke that within hours of her announcing the spending review \u2014 which allocated cash to Whitehall departments for the next three or four years \u2014 ministers were demanding a bigger share of the ten-year infrastructure plan.<\/p>\n<p>Meanwhile Kemi Badenoch, Conservative leader, told Scottish Tories that she would scrap the windfall tax on the North Sea energy sector, which her government introduced and which raised \u00a33.6bn in 2023-24. Labour officials say the energy profits levy is highly popular with voters.<\/p>\n<p>While calling for lower taxes, Badenoch also criticised Reeves for not using her <a href=\"https:\/\/www.ft.com\/content\/5cadba2d-d60f-4bb7-901e-1a321f27303f\" data-trackable=\"link\">spending review<\/a> to show how she would raise billions of pounds extra to meet a commitment for Britain to spend 3.5 per cent of its GDP on defence in the next parliament.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--audio o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"3247b8d5-8b53-42a7-ba40-6aae4b9a039e\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/3247b8d5-8b53-42a7-ba40-6aae4b9a039e\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:3000\/3000\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fnext-video-editor-images.s3.ap-northeast-1.amazonaws.com%252Fda286726-9561-446c-a6cc-f1df049fba63%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Chancellor Rachel Reeves will next week give more details of a \u00a3113bn capital spending spree with a 10-year infrastructure plan intended to boost growth in Labour\u2019s heartlands, as ministers geared up for a fight with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":291310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[83335,13439,18223,28237,10933,10946,25647],"dealstore":[],"offerexpiration":[],"class_list":["post-291309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-heartlands","tag-infrastructure","tag-labour","tag-lay","tag-plan","tag-reeves","tag-targeting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reeves to lay out infrastructure plan targeting Labour heartlands - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=291309\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reeves to lay out infrastructure plan targeting Labour heartlands - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. 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