North East Mayor Kim McGuinness on Chancellor’s spending review

Ms Reeves set out spending plans for the coming years today (Wednesday, June 11), with boosts for the NHS, defence and schools as she said the UK was “starting to see the results” of Labour’s efforts.

The spending review sets out day-to-day spending plans for the next three years and capital spending plans for the next four.

North East Mayor Kim McGuinness (Image: KIM MCGUINNESS) Ahead of the spending review, the government had already committed £1.85bn for North East transport, including a £900m extension of the Metro to Washington.

Under the plans, the line would create a loop connecting to the existing Metro stations at Pelaw and South Hylton, with new stops planned for Follingsby, Washington North and Washington South.

Responding to the Chancellor’s statement to the House of Commons, North East Mayor Kim McGuinness said that the overall spending will mean “more spades in the ground” in the region.

She said: “For too long, spending and investment have been rigged in this country against the people of the North East. But that is now changing.

Ahead of the spending review, the government had already committed £1.85bn for North East transport, including a £900m extension of the Metro to Washington (Image: NEXUS) “This is a transformative moment for our region, with investment that will create jobs, build new affordable homes, transform our public transport and grow our industries.

“We secured £1.85bn for North East transport, which will extend the Metro to Washington and restore our iconic Tyne Bridge. As well as £30m for science and research.

“I’ll be starting work with the Deputy Prime Minister on the details of the North East’s dedicated 10-year growth fund, which I will use to unlock world-class opportunities for our region that will benefit people of all backgrounds.”

The North East Mayor also hailed the announcement from the spending review that there will be an extension of the £3 bus fare cap until at least March 2027.

Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street, London (Image: PA MEDIA) She added: “Our public transport system will prioritise local people over profits. I’ve already committed to keeping single bus fares in the North East capped at no more than £2.50 until the end of the year.

“I was pleased to see the Chancellor cap bus fares at £3 until March 2027, and I will be looking at ways to keep our fares low for longer.

“We’ll see more spades in the ground with an enormous boost for social housing in the North East, creating the genuinely affordable homes local people need.

“I’ll keep working with the Chancellor and fighting to channel more investment into the North East.” 

Screen grab of Chancellor of the Exchequer Rachel Reeves delivers her Government’s spending review to MPs in the House of Commons, London (Image: PA MEDIA) Despite the review winning praise from the North East Mayor, Schools North East – charity that represents all 1,150 schools in the region – warned that schools across the region will find “limited comfort” from the announcement.

The Chancellor announced that there would be a £4.7 billion uplift in the schools budget by 2028–29.

But the director of Schools North East, Chris Zarraga, has hit back and claimed that a lack of Special Educational Needs and Disabilities (SEND) funding and schools facing increased costs “will continue to leave North East pupils behind.”

He said: “Any Spending Review that fails to deliver genuine, real-terms increases in core budgets, targeted SEND funding, and a capital programme based on actual regional need will continue to leave North East pupils behind.

Director of Schools North East, Chris Zarraga (Image: SCHOOLS NORTH EAST) “Schools here are facing a perfect storm of rising costs, crumbling buildings, and growing pupil need, yet are being asked to meet it all with frozen budgets and limited support.

“Investment in education is not a luxury, it’s the foundation for regional recovery and long-term national growth, and it must start with the schools that serve our most vulnerable children.”

Within the spending review, the £1.5bn A66 dualling scheme from Scotch Corner in North Yorkshire to Penrith in Cumbria wasn’t mentioned directly in the announcement. 

Screen grab of shadow chancellor Mel Stride responds after Chancellor of the Exchequer Rachel Reeves delivered her Government’s spending review to MPs in the House of Commons, London (Image: PA MEDIA) Instead, the Treasury said that “the Department for Transport will set out their long-term plan for the Strategic Road Network through the third Road Investment Strategy.”

It added: “Further detail on individual schemes like the A66 will be provided by the Department for Transport in due course.”

Elsewhere in the spending review, it was announced that the NHS will get a real-terms, day-to-day spending increase of three per cent per year, equating to £29bn per year, there will be £39bn over the next 10 years to build affordable and social housing, and a £30bn commitment to nuclear power.

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The Chancellor also revealed that the use of hotels to house asylum seekers will end during this Parliament, which the Chancellor said would save £1bn per year, as well as £7bn to fund 14,000 new prison places and up to £700 million per year into reform of the probation system.

Ms Reeves said: “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.”

But critics of the review warned of financial troubles in the future if the review is followed.

Paul Johnson of the Institute for Fiscal Studies said three per cent a year increases in NHS spending “does mean virtually nothing on average for current spending elsewhere,” while shadow chancellor Sir Mel Stride said “this is the spend-now, tax-later review” adding Ms Reeves “knows she will need to come back here in the autumn with yet more taxes and a cruel summer of speculation awaits”.