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Today, the Chancellor has announced her areas of spending on the economy that are going to shape Britain for the next few years
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She's made her choice, she says. Here's what she's decided. Defence spending will now rise to 2.6% of GDP by April 2027, including the contribution of our intelligence agencies
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That uplift provides funding my right honourable friend, the Defence Secretary, with £11 billion increased in defence spending
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We knew before now that money for defence was coming, particularly given everything that we've seen happen in Ukraine and Russia
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as well as elsewhere around the world. The government is pledging £11 billion more on defence
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but, but, but the necessity is apparently going to be needed to spend more over the coming years
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not just 2.5% of GDP, but 3, maybe even 3.5%, or as Donald Trump wants, 5% of gross domestic product
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These are huge sums of money. But in the age of instability that we find ourselves in, the government feels it has no choice but to cut from some areas, particularly areas like welfare, and spend it on Britain's war machine
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But there's more. I am proud to announce the biggest cash injection into social and affordable housing in 50 years
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A new affordable homes programme in which I investing billion over the next decade ALAN the government plan to completely redo the planning laws in this country
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now a huge sum of money is going to be spent on housing. £39 billion, the Chancellor suggests
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And that is going to lead to, she hopes, more social housing, more affordable housing
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not only to try and bring, I guess, the house price down for people who are struggling to get on the ladder
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but to see those queues for social housing in particular shorten much more
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We talk about it a lot. There are so many people on waiting lists for social housing
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They've got to build more of them. The key to this will be how quickly those homes can be built
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Will they actually get out of the ground any time before Rachel Reeves is happily retired
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And what about those asylum hotel costs? The party opposite left behind a broken system
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Billions of pounds of taxpayers' money spent on housing asylum seekers in hotels
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leaving people in limbo and shunting the cost of failure onto local communities
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We won't let that stand. So I can confirm today that led by the work of my right honourable friend, the Home Secretary
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we will be ending the costly use of hotels to house asylum seekers in this Parliament
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Funding that I have provided today, including from the Transformation Fund, will cut the asylum backlog hear more appeal cases and return people who have no right to be here You know about the problems that we been having with the boats arriving on England southeast coast and the costs that are associated with it As the Chancellor said
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a billion pounds a year just on asylum hotel costs. Now we have a concrete pledge by a senior
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cabinet minister that those hotel costs will end by the end of this Parliament
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It's a canny move from Rachel Reeves. All the talk around this spending review was that she and the Home Secretary
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had had a bit of falling out over budgets, and now the Chancellor is essentially making a pledge
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that the Home Secretary has to deliver. End the cost of asylum hotels in the next few years, or what
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And then as always, whatever anyone's talking about, there's Nigel Farage. The member for Clacton may be playing the friend of the workers now
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but some of us are old enough to remember when he described the disastrous Liz Trust Budget as, and I quote
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the best Conservative Budget since the 1980s. Mr Speaker, after that which is done, he still nods along
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They have learnt nothing. And his party have been in Parliament for less than a year
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And yet they have already racked up £80 billion of unfunded commitments
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They are simply not serious Such is the threat to Labour of reform that the chancellor turned her guns on Nigel Farage in Parliament today saying that the plans from his party just do not add up
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whether it comes to opening the coking mines in Wales or indeed spending huge sums of money on the
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NHS. The Labour Party are absolutely desperately keen to make sure that people see what Farage is
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saying and then see some challenge to it, that he's not able to get away with just saying what
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wants but he has to root that in some reality and that is what the Chancellor was trying to make
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people do. Find the reality of what it is Farage is saying in part because his party have become
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such a threat to Labour electorally. The real kicker in this spending review is yes the sums
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of money that are being spent, yes the choices that the Chancellor has made to spend that money
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on but where's that money coming from? That is going to come from day-to-day spending in government
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departments. This is akin to what you do when you buy some clothes on Klarna. You spread it out over
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different years to make sure you can end up paying that money. But the Chancellor has done this in a
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way that says, I'll give you some money now, and then in a few years' time we're going to have to
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find that money from somewhere else. It's a real, real political risk for the Chancellor, because the
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money she's announced today has not necessarily all been accounted for. So this might be as good
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as it gets for Rachel Reeves because in October at the budget and then further down the line
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of the course of this parliament she's going to have to find that money from somewhere
