The last few weeks have proved difficult for Rachel Reeves. In public, the news has been dominated by Labour’s U-turn on the winter fuel allowance. In private, the Treasury has been caught up in wrangle after wrangle with ministers, all negotiating what their departments would receive in the spending review.
Reeves’ speech to parliament on Wednesday announcing the review was a chance to tell a more positive story – particularly for a government accused of lacking direction and ambition.
As economics editor Heather Stewart reports, there were some big winners: health, defence, and housing. Yet at the same time, day-to-day spending for some departments – such as local government or the environment – seems very tight.
So, asks Helen Pidd, will Labour allow those services to come under even more pressure, or will Reeves have to eventually raise taxes to fund them too?
Photograph: House of Commons/AFP/Getty Images
