Shadow Chancellor Mel Stride savages Labour’s spending plans as ‘fantasy’ and warns Britons face ‘cruel summer’ of tax speculation
Rachel Reeves faced a blistering attack in the Commons today as she unveiled her massive spending review, with Conservative critics branding her the “tinfoil Chancellor” who has “lost control” of Britain’s economy after just 11 months in power.
The Chancellor’s ambitious plans to pump billions into public services were immediately dismissed as “not worth the paper they’re written on” by Shadow Chancellor Mel Stride, who warned taxpayers they’re facing a “spend now, tax later” bombshell.
In extraordinary scenes in the House of Commons, Stride launched a devastating assault on Labour’s economic credibility, declaring: “She presented herself as the iron chancellor, but what we have seen is the tin foil chancellor, flimsy and ready to fold in the face of the slightest pressure.”
The Conservative frontbencher didn’t hold back, adding: “She is weak, weak, weak… constantly teetering on the edge.”
NHS Emerges as Big Winner
Despite the fierce criticism, Reeves pressed ahead with her spending commitments, announcing what she called “a record cash investment in our NHS” – with health spending set to rise by 3% annually throughout the review period, delivering an extra £29 billion per year.
The Chancellor told MPs: “This is a Spending Review to deliver the priorities of the British people. Security, a strong Britain, in a changing world. Economic growth, powered by investment and opportunity in every part of Britain. And our nation’s health, with an NHS, fit for the future.
She defiantly declared: “In place of chaos, I choose stability. In place of decline, I choose investment. In place of pessimism, division and defeatism…I choose national renewal.”
Defence Spending Boost
Under mounting pressure from the US and NATO, Reeves confirmed defence spending will soar to 2.6% of GDP by April 2027 – higher than the previously announced 2.5% target. The boost will fund 12 new nuclear-powered attack submarines and bolster Britain’s cyber warfare capabilities.
But even this wasn’t enough for the Conservatives, with Stride demanding the government go further and bring forward a 3% target to this parliament.
Housing Revolution Promised
In a bid to tackle Britain’s housing crisis, the Chancellor unveiled a staggering £39 billion boost to social and affordable housing investment over the next decade – nearly doubling annual housing investment to £4 billion by 2029/30.
The spending spree also includes:
- £4.5 billion extra for schools
- £7 billion for 14,000 new prison places
- £15.6 billion for public transport upgrades outside London
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- £700 million yearly for probation system reform
- Free school meals expanded to 500,000 more children
‘Cruel Summer’ of Tax Rises Ahead?
But Stride warned the spending bonanza would inevitably lead to more tax pain for hard-working Britons, despite Labour’s pledge not to raise income tax, National Insurance or VAT.
This is the spend now, tax later review, because the Chancellor knows she will need to come back here in the autumn with yet more taxes and a cruel summer of speculation awaits,” he thundered.
The Shadow Chancellor painted a grim picture of Labour’s economic management, claiming: “Her tone today suggests that all is well, the sunny uplands await. What a hopeless conceit. A masterclass in delusion.”
He accused Reeves of “spending money it doesn’t have, with no credible plan to pay for it” and warned: “This spending review won’t be a plan for the future – it will be a dangerous gamble with Britain’s economic stability.
Departments Face the Axe
While some departments celebrate bumper budgets, others face brutal cuts. The Home Office budget is set to fall by 1.7% despite government pledges on border security. Local government, justice departments and environmental agencies are also bracing for squeezed budgets.
The Institute for Fiscal Studies has warned that real-terms increases to the NHS above 2.5% will mean painful squeezes elsewhere. With day-to-day spending only set to increase by 1.2% per year in real terms, many departments face an average 1.3% cut after accounting for protected areas.
London Mayor’s Fury
Adding to the Chancellor’s woes, London Mayor Sadiq Khan is reportedly “furious” over a lack of commitment to major infrastructure projects for the capital, with City Hall sources calling it “unacceptable” if the Met Police doesn’t get the funding it needs.
Red Wall Focus
Political observers noted the Chancellor’s deliberate focus on Red Wall constituencies – those former Labour heartlands that flipped Conservative in 2019. GB News Political Editor Christopher Hope observed: “It sounded like one of our GB News weather forecasts. She was going around the Red Wall, name-checking all sorts of places you don’t normally hear mentioned from the despatch box by a Chancellor.
The Verdict
As the dust settles on this explosive Commons showdown, one thing is clear: Rachel Reeves has made her choices, gambling billions on public services while hoping economic growth will foot the bill.
But with the Conservatives warning of inevitable tax rises to come and her own fiscal headroom evaporating faster than morning mist, the question remains: Has the Chancellor bitten off more than Britain’s economy can chew?
Only time will tell if this is the “national renewal” Reeves promises – or the economic disaster her critics predict.
Image credit:
Rachel Reeves by HM Treasury, Wikimedia Commons, CC BY 2.0
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