Funding Deal Ahead of Spending Review

Funding Deal Ahead of Spending Review

Home Secretary Yvette Cooper is the last minister to agree on a funding deal with the Treasury ahead of Wednesday’s Spending Review, which sets budgets for government departments for the coming years.

Ongoing Negotiations

Ministers have been in discussions with Chancellor Rachel Reeves and her team to finalize these budgets. Housing Secretary Angela Rayner reached an agreement on Sunday evening after "progress" in negotiations, according to sources close to Downing Street.

Concerns Over Police Recruitment

Home Office ministers are worried that there is not enough funding to recruit all 13,000 new police and community support officers promised in Labour’s manifesto. Technology Minister Peter Kyle acknowledged this issue during his appearance on The Andrew Marr Show. He stated that police need to contribute to the reform of public services, emphasizing that every part of society is struggling under current conditions.

Kyle noted that Chancellor Rachel Reeves is facing pressure from all departments for additional funding. When asked about investment in policing, he affirmed, "We are delivering investment in the police," but stressed that reforms are necessary and that simply increasing funding is not a viable solution.

"We expect the police to start embracing the changes they need too because we can’t just keep throwing more cash at it if you’re going through reforms… We want them [the Police] doing their bit as well," Kyle said.

Implications of the Spending Review

As the Spending Review approaches, the implications of these statements remain unclear. Labour has pledged an additional £1 billion for policing over three years, but Home Office officials argue this will be insufficient given rising costs and recruitment targets.

Ministers have been negotiating with Treasury officials since last week over the final details of departmental spending plans. They must reach an agreement by Tuesday night to avoid being excluded when Chancellor Rachel Reeves outlines departmental spending plans later this week.

Statements from Ministers

Downing Street confirmed that Ms. Rayner had agreed to a deal but declined further comment while talks continue among other ministers and Treasury officials.

Peter Kyle, during his appearance on the BBC, expressed concerns about the ability to recruit the promised number of police officers due to insufficient funding. He stated, "Every part of society is struggling under current conditions, so I think every part needs to do its bit – including our public services."

Addressing Food Bank Usage

Kyle also commented on the issue of food banks, noting that some individuals working full-time still rely on them. He pointed out that those not contributing through taxes or national insurance are placing a heavier burden on others.

Taxation Claims

Kyle denied claims made by former Prime Minister Rishi Sunak, who suggested that Labour would raise taxes by £100 billion over five years. Sunak claimed Labour would increase corporation tax from 19% to 24% and raise income tax rates significantly.

"That’s wrong," Kyle insisted. "What Rishi Sunak did was take figures straight out without checking whether they’re true or accurate."

Kyle argued that any increase in corporation tax would be offset by existing measures, such as freezing council tax bills until April next year.

Call for No Cuts

Shadow Home Secretary Yvette Cooper urged Chancellor Rachael Reeves not to yield to demands from Tory MPs for cuts across Whitehall. She warned that any reductions could lead to widespread job losses in government departments, particularly those focused on crime prevention.

Shadow Home Office Minister Louise Haigh expressed her concerns about recruitment targets and indicated that she might block cuts within her department unless similar agreements are reached elsewhere.

During an interview, Haigh stated:

"Yes, absolutely. I mean let’s remember why we’re having this spending review – it’s because inflation has gone up so high – wages have gone down so far behind inflation – living standards are plummeting. It makes no sense whatsoever cutting jobs now when actually what we need most right now is jobs creating growth, creating stability, giving people security."

Haigh emphasized that cutting jobs would exacerbate the current situation, particularly in light of the challenges facing benefits and housing support.

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