This afternoon, Chancellor Rachel Reeves delivered the 2025 Budget, with a number of measures to improve infrastructure, education, and public services.
In the build-up to the Budget, many measures were already announced by the government. This includes the significant investment into NHS technology and neighbourhood health centres that would contribute to reducing waiting times and delivering care closer to home. Alongside this, the Chancellor reiterated that Police and Crime Commissioners would be abolished, as well as 5,000 councillors, to cut the cost of the public sector and save more than £250 million over five-years.
Transport will also bring major benefits, with the government committing to extending the Docklands Light Railway to Thamesmead and investing in the Lower Thames Crossing. It was also confirmed that funding would be allocated to the Midlands Rail Hub, the Transpennine Route Upgrade and Northern Powerhouse Rail.
This move supports other government measures, including the expansion of Heathrow and Gatwick Airports, and the construction of Sizewell C
Furthermore, the government’s commitment to delivering 1.5 million homes will be supported by the decision to fund hundreds more planners, as they
As reported by Public Sector Executive, mayors will be given the power to introduce a Visitor Levy, however £13 billion of flexible funding will also be allocated for seven mayors to invest in skills, business support, and infrastructure.
The devolved governments in Scotland, Wales and Northern Ireland will also benefit from additional funding. As usual, the Scottish Government will receive the largest settlement with £820m, Wales will get £505m, and Northern Ireland £370m. Alongside the additional investment, a number of measures that were discussed before the Budget was announced were confirmed, including the new AI Growth Zones in Wales.
Rachel Reeves, Chancellor of the Exchequer
In response to the Budget, Welsh First Minister Eluned Morgan said:
“This is a Budget which will help people right across Wales. It will mean more money in the pocket of people who need it the most, support for energy bills, a raise in the minimum wage and good news for pensioners.
“I’m pleased the Chancellor has listened to our call to scrap the two-child benefits limit, which will help to tackle the scourge of child poverty.
“We called on the UK Government to continue to support us with more money for hard pressed public services and they have delivered with an extra £500m, building on the £5 billion of extra funding they have already confirmed.
“We will also see significant investment in Wales, including in AI Growth Zones, advanced manufacturing, steel transition in Port Talbot, and nuclear energy in Anglesey.
“The UK Government has increased Wales’ fiscal flexibilities – this will give Wales a more durable financial settlement, supporting Welsh public services and economic growth and recognises the ambitions in the UK Government’s manifesto commitment. Last year these additional flexibilities meant we were able to provide thousands of additional treatments in the NHS in Wales.”
In Scotland, £14m has been committed to low-carbon technologies in Grangemouth and £20m each for renewed infrastructure in Inverclyde and the redevelopment of Kirkcaldy town centre.
As mentioned in her spending review, the Chancellor also confirmed that an extra £5m would be committed to putting libraries into secondary schools and £18m for the upgrading and improvement of school playgrounds to ensure that schools are a better place for children to learn and develop.
In addition to improving schools, apprenticeships will benefit in a move to support young people as well as small businesses. Apprenticeships up to the age of 25 will now be free for small business, ensuring that young people can earn while they learn on the job, and giving businesses a workforce for the future.
Announcing a number of measures to improve the cost of living and welfare for the people that need it, the Chancellor outlined how the average family will benefit from a £150 reduction on their energy bills, which can rise to £300 when poorer households combine this with the Warm Homes Discount.
Welfare changes also brought one of the biggest announcements of the Budget, with the Chancellor confirming that the two-child benefit cap will be lifted in full, from April 2026 – with this supporting 450,000 children out of poverty.
North East Mayor Kim McGuinness reflected on the Budget, saying:
“Today is a major victory in our fight to end child poverty in the North East. We fought for the end of the cruel two-child benefit cap that pushed families into poverty and stifled opportunity. Today the Chancellor lifted that cap. This will change the lives of nearly 50,000 North East children. Every child deserves the best possible start in life, and this makes our £30m child poverty action plan even more impactful. At the same time more than 4,200 retired miners in our region will get bigger pension payments, something families across our region will celebrate.
“I lobbied government to keep bus fares affordable so I’m pleased they’ve listened and kept the cap. However, I’m planning to keep them even lower for North East passengers, with plans to freeze our £1 for young people aged 21 and under and a £2.50 fare for adults, that’s 50p cheaper than the national cap.
“A visitor levy means we can enter a new era of regional events and festivals. This will create thousands of jobs, while attracting even more visitors to our unique world heritage sites at Hadrian’s Wall and Durham Cathedral, our stunning coastlines and the iconic Tyne bridges and quayside.
“We’ve also secured £96m for a Local Growth Fund which we will use to help small businesses on our high streets and retail parks to grow and create new jobs for people right across our region.
“While I welcome these measures, we now must see more for the North East in the coming months. Including a commitment to re-opening a railway line connecting towns and villages in County Durham with our Metro at Washington, as well as upgrades to the East Coast Main Line.”
Image credit: iStock and UK Parliament
