Spending Review 2025

Baroness Whitaker Excerpts

Thursday 12th June 2025 Lords Chamber

[Lord Livermore (Lab)]

The noble Baroness says that we do not have to wait for it. She is absolutely correct: we do not have to wait for it because her Government introduced it. A 5% cap in council tax is something introduced by the previous Government—we have not changed that. It is a cap. Councils do not have to increase council tax by 5%, but, under the rules, they cannot increase council tax by more than 5% without a local referendum. We have not changed that. That is to invest in things such as social care, but also, as is normal, to put money into policing.

[Baroness Whitaker (Lab)]

My Lords, the benefits of the infrastructure expenditure are wide-ranging and indeed thrilling. However, most of those benefits are going to be long term, and I think most people are still worried about the cost of living and their day-to-day access to public services. Can my noble friend the Minister say a little more about how the plan is going to affect ordinary people, day-to-day?

[Lord Livermore (Lab)]

My noble friend is absolutely right when she says that a lot of our capital spending is long term. I think that is perfectly right. For example, the noble Baroness earlier talked about pension funds. I met representatives of some of the largest Canadian-Australian pension funds recently, and they told me that one of the most attractive parts of the UK economic landscape at the moment is the long-termism of our policy-making. They want to see long-term commitments and long-term investment so that they can invest into this country. The long-term nature of the policies is important, but my noble friend is absolutely right that people need to see improvements in their lives much sooner than that, because obviously they have lived through the cost of living crisis brought about by the previous Government. We need to see those cost of living improvements quickly.

One of the funds established yesterday was the pride in place fund. It is important that people see improvements quickly in their local communities. We also announced funding for the warm homes plan, with a total of £13 billion allocated across this Parliament to improve the energy efficiency of people’s homes. We did a big boost to social and affordable housing, with £39 billion, and expanded free school meal eligibility in England to all children with a parent receiving universal credit. We invested more to fund childcare entitlements for working parents. We funded the freeze to prescription charges at below £10 over the spending review period, and we launched a new crisis and resilience fund to help families when in crisis.