Capital spending alone won’t improve people’s living standards
Spending review shows Chancellor remains held back by self-imposed fiscal rules, warns NEF
11 June 2025
The government’s focus on increasing capital spending will not help improve living standards in the immediate, the New Economics Foundation (NEF) has warned in response to the spending review today [Wednesday 11 June].
Responding to the Chancellor’s announcement, NEF chief executive Danny Sriskandarajah said:
“While more money for new housing and energy infrastructure is very welcome, capital spending alone won’t improve people’s living standards.
“People across the country are already struggling to pay for the essentials, and we know that cuts to benefits and day-to-day spending in key departments will only leave people feeling worse off. Voters have already shown this is not something they will tolerate.
“The government can’t cut its way out of this mess. It must consider freeing itself from the self-imposed fiscal rules that continue to hold us all back, and be willing to tax wealth the same way we tax income from work so we can properly fund the services we all rely on.”
Chaitanya Kumar, head of economic and environmental policy, said:
“Investing billions in upgrading our draughty homes and new energy infrastructure is vital if we want to tackle the crisis of high energy bills.
“However, it is disappointing that the Chancellor has today diluted the ambition of Great British Energy, from a public owned energy generator to another financial institution.
“This is a missed opportunity to generate and retain immense economic benefits from renewables for communities across the country.”
ENDS
Contact
James Rush – james.rush@neweconomics.org
Notes
The New Economics Foundation is a charitable think tank. We are independent of political parties and committed to being transparent about how we are funded
