The Budget Speech the UK Chancellor Never Delivered

Madam Deputy Speaker…

Today, I rise to present a budget not just of figures and forecasts but of vision and values, a budget that reflects our commitment to every community, every family, and every essential worker in this United Kingdom. This is a budget of empowerment, giving councils the tools they need to shape the future, and a budget of resilience, equipping our public services and workforce to meet today’s demands with dignity and strength. It is a budget that will make a real difference in people’s lives, because it’s a budget grounded in concrete plans, timelines, and funding to make it all possible.

The challenges we face are immense, but so too are our ambitions. This government has a mandate to deliver stability, growth, and lasting change. Today, I outline a ￡50 billion plan to achieve this, with full transparency on where the money will come from, how it will be used, and when people will see the impact. Our approach is clear: a strong foundation of fiscal stability, the empowerment of local councils, and a commitment to sustainable growth that reaches every corner of this nation.

Madam Deputy Speaker, this budget is a promise, a promise to build a fairer, greener, and more resilient United Kingdom.

Securing Fiscal Stability for the Future

Before we can build, we must secure a foundation of fiscal stability. This budget introduces two guiding principles that will ensure every investment is made responsibly. First, our Stability Rule will bring the current budget into balance by 2029-30, putting an end to borrowing for day-to-day spending. By setting a clear timeline and target, we ensure that our spending today doesn’t become a burden on tomorrow.

The Investment Rule goes hand-in-hand with this, focusing on debt reduction and requiring that every pound invested directly contributes to long-term growth. These fiscal rules mean that we will make smart choices now to enable sustainable prosperity. And these rules allow us to deliver the ￡50 billion we’re committing over the next five years, a commitment that isn’t just a headline but a concrete plan.

Madam Deputy Speaker, this budget is built on sound financial footing, but it’s not one penny less ambitious for it.

Investing in Our Essential Public Service Workers

Public service is not just a job; it is a calling, and our essential workers deserve our unwavering support. To honour this, we are establishing an ￡800 million Public Service Resilience Fund over three years. This fund will provide councils with the resources they need to support their staff with mental health services, resilience training, and crisis response support.

In the first six months, we will launch this fund, making immediate resources available for councils to use in setting up mental health support and training programs. We will also establish partnerships with leading mental health organizations to deepen the range of support available. Within the first year, councils will begin to access these funds to expand services, and by the end of the second year, we will conduct assessments based on community feedback to refine these programs further, ensuring they meet the real needs of our essential workers.

This will be funded by redirecting existing competitive grants into this streamlined, efficient support system. Every pound previously tied up in bureaucratic processes will go directly to those who serve on the frontlines of our communities. This government stands with public service workers, and this fund ensures that they have the resources they need to meet challenges head-on.

Providing Councils with Stability Through Multi-Year Funding

Councils cannot build a future on short-term funding. They need stability, autonomy, and the freedom to plan long-term. This budget introduces multi-year block grants, backed by an initial ￡5 billion allocation, to replace short-term, competitive funds with a stable, formula-based approach.

Within the first six months, we will lay the legislative groundwork to formalize these multi-year settlements, holding consultations with councils to shape a fair, needs-based block grant formula that considers population density, economic need, and local demand for services. Over the next year, we will begin to roll out these grants, ensuring every council has access to funding that they can rely on year after year. And in the long term, these allocations will undergo annual reviews to adjust for inflation, local growth, and evolving service demands.

By redirecting ￡2 billion from existing competitive funding pots into these block grants, we eliminate costly and time-consuming application processes, empowering councils to apply funds where they are needed most. This ensures councils have both the stability and the autonomy they need to deliver for their communities.

Delivering Affordable Housing for Every Community

Housing is more than just shelter; it’s the foundation of stability for families and communities. We are committing to build 1.5 million affordable and social homes over the next five years with a ￡15 billion investment. This budget provides councils with the resources to address housing shortages, build new homes, and revitalize communities.

In the first six months, we will establish initial public-private partnerships, with a focus on regions facing the highest housing demand. We will also draft a reformed Right to Buy policy to cap discounts, ensuring proceeds are reinvested in housing. Over the following year, we will provide local planning departments with recruitment and training grants to build their capacity to manage and oversee these projects. By the end of the first year, councils will begin receiving technical and financial support to enforce housing targets, holding developers accountable to their commitments.

This housing initiative will be funded through a combination of public-private partnerships and redirection of council assets, including the full reinvestment of Right to Buy sales into new housing stock. This approach ensures that every penny invested is returned in the form of safe, affordable homes for those who need them most.

Building Strong Public Services Through Prevention

Preventative public services save lives and reduce long-term service demands. This budget allocates ￡2 billion annually to council-led preventative services, focusing on social care, youth intervention, and homelessness prevention.

In the first six months, we will impose profit caps on private providers in children’s care, redirecting funds into council-run initiatives. Within a year, we will launch pilot programs in council-run youth intervention and homelessness prevention to identify best practices and effective strategies. By the third year, these programs will be scaled up nationwide, with councils continuously refining services based on data to maximize efficiency and impact.

Funding for these preventative services will come from the savings generated by profit caps within private children’s care. These caps allow us to reinvest funds directly into local services, putting prevention at the heart of our public service strategy. This ensures that taxpayer money is used wisely to support proactive solutions, improving lives and reducing demand on critical services.

Setting New Standards for Councillor Conduct

Trust in local government is essential, and our councillors must meet the highest standards. Today, we are introducing a centralized system for councillor complaints, supported by a ￡100 million fund over three years. This system will provide transparency, accountability, and a fair process for addressing misconduct.

Within six months, this system will be set up, enabling residents to file complaints centrally and councils to act on them swiftly. Over the next year, we will enact legislation to formalize conduct standards, allowing councils to address cases of misconduct consistently and fairly. Privacy protections will be introduced to protect councillors from harassment, and in the long term, standards will be reviewed based on public feedback to ensure they continue to meet community expectations.

This centralized system and its protections will be funded by administrative savings from streamlined council operations, meaning that every pound saved from improved processes will go toward strengthening transparency and accountability.

Developing a Sustainable Public Sector Workforce

A sustainable public sector relies on a skilled, supported workforce. To meet recruitment and retention challenges, we are establishing a Workforce Development Group, supported by a ￡1 billion investment over three years, to address skill gaps and promote careers in public service.

In the first six months, we will launch partnerships with schools, universities, and training providers to raise awareness of public service careers. Within the first year, councils will roll out apprenticeships and career development programs focused on essential areas such as social work and urban planning. In the long term, flexible work policies will be implemented to retain council staff, and recruitment efforts will be monitored to ensure they align with service demand.

This workforce initiative will be funded through administrative efficiency savings and partnerships with educational institutions. By investing in public service careers today, we build a sustainable workforce for tomorrow.

Empowering Councils through Devolution

The English Devolution Bill will transfer key decision-making powers over transport, skills, and economic development from Whitehall to local authorities. An initial ￡2.5 billion will support this transition, giving councils the resources they need to lead on issues that matter to their communities.

Within six months, we will begin drafting the English Devolution Bill in collaboration with local leaders, ensuring it reflects the unique needs of each region. Select regions will pilot devolved powers within a year, with adjustments made based on their experiences and feedback. In the long term, the bill will scale up nationwide, putting control directly into the hands of those who know their communities best.

By redirecting resources from centralized funds and establishing savings from reduced administrative oversight, we create a devolution plan that strengthens councils and empowers local leaders.

Modernizing Public Services Through Digital Transformation

To bring councils into the digital age, we are dedicating ￡800 million to a Technology and Automation Fund. This fund will support councils in digitizing records, improving accessibility, and enhancing data security, creating more efficient, streamlined public services.

Within the first six months, we will assess councils’ digital needs, focusing on public-facing services and data management. Over the following year, we will develop shared digital platforms for councils, making public services more accessible. In the long term, AI-driven data analysis will allow councils to predict service demand and respond proactively.

The Technology and Automation Fund will be financed through administrative savings generated by digital efficiencies. These long-term savings mean that every pound invested in digital transformation is returned in improved, accessible public services.

Green Councils for a Sustainable Future

This budget includes a ￡3 billion commitment over five years to support councils in addressing climate challenges. Through the Green Councils program, we will fund renewable energy projects, expand low-emission public transport, and promote sustainable building practices.

In the first six months, we will integrate climate resilience standards into housing projects and fund targeted adaptation strategies in flood-prone areas. By the end of the first year, we will launch renewable energy projects and expand public transport to reduce emissions. In the long term, we will evaluate the effectiveness of these programs, adjusting based on data to continuously improve environmental outcomes.

Green taxes and levies on environmentally harmful practices will fund the Green Councils program, ensuring that those who contribute to climate challenges also contribute to their solutions.

Fostering Local Economic Growth and Job Creation

Our Local Growth Grants Fund, with ￡2 billion over five years, empowers councils to develop business hubs, support retraining programs, and attract investment in green and tech sectors. These funds will stimulate economic growth, create jobs, and build resilient local economies.

Within six months, we will launch the fund, supporting councils as they establish business-friendly policies. Over the following year, councils will have access to incentives to attract green and tech businesses. By year three, skill centres focused on clean energy, healthcare, and technology will be operational, creating local employment opportunities.

This growth initiative will be funded through public-private partnerships and business grants, ensuring a steady return on investment for local communities.

Supporting Youth Services and Public Health

This budget allocates ￡1.2 billion over four years to youth services and an additional ￡1 billion for public health. These funds will support councils in creating safe youth spaces, scholarships, addiction support, mental health services, and preventative care programs.

Within six months, we will develop youth engagement programs in partnership with councils and health initiatives targeting mental health and addiction support. By the end of the first year, councils will establish scholarships and after-school programs for disadvantaged youth. In the long term, every community will have access to “Healthy Community Hubs” that integrate multiple health services, addressing local needs comprehensively.

These initiatives will be funded by redirected educational grants, health levies, and administrative efficiencies, ensuring that every pound goes directly into programs that benefit youth and public health.

Funding a Future Built on Fairness and Responsibility

This government has created a budget that balances the books while building the future. Our funding sources include redirected grants, new green levies, public-private partnerships, and savings from digital efficiencies. The ￡50 billion investment will be fully funded without raising taxes on working people, providing real value for every pound spent.

Madam Deputy Speaker, this budget is not just an economic plan; it is a social contract. It is our promise to create a future of fairness, sustainability, and opportunity for all. And with that, I commend this budget to the House.