The last few weeks have been tough for Rachel Reeves. The main news has been Labor’s U-turn on the winter fuel allowance, and behind closed doors, the Treasury has been in several disputes with ministers over their respective departmental budgets in the spending review.
Reeves’ speech to parliament on Wednesday, announcing the review, provided an opportunity to discuss a more positive agenda – notably for a government often criticized for lacking direction and ambition.
According to our economics editor Heather Stewart, there were several major beneficiaries: health, defense, and housing. At the same time, daily expenses for some departments, such as local government or the environment, appear to be quite restrained.
Therefore, Helen Pidd asks, will Labor let these services deteriorate further, or will Reeves eventually have to raise taxes to fund them as well?
