Chancellor Unveils Package To Deliver On Promises Of New Government

23rd September 2024

The Chancellor has today unveiled a package of measures to deliver on the agenda of the new government.

750 schools with primary aged pupils funded for breakfast club pilot to run from April 2025
New Industrial Strategy to be published in spring
Decision to write off over £640 million in written off Covid PPE contracts reversed
HMRC to consult on e-invoicing for businesses and government departments
The Chancellor has today unveiled a package of measures to deliver on the agenda of the new government including a breakfast club pilot for 750 schools with primary aged pupils, new powers for the Covid Corruption Commissioner, e-invoicing to support business and the next steps on the government's industrial strategy.

School Breakfast Club Pilot

The Chancellor announced that up to 750 schools with primary aged pupils will be invited to take part in a £7 million breakfast club pilot. The funding will allow these schools to run free breakfast clubs for their pupils in the summer term (April-July 2025).

The Department for Education will work with the schools selected as part of the pilot to understand how breakfast clubs can be delivered to meet the needs of schools, parents and pupils when the programme is rolled out nationally.

This will help reduce the number of students at schools with primary aged pupils starting the school day hungry and ensure children come to school ready to learn. It will also support the government's aim to tackle child poverty by addressing rising food insecurity among children.

Covid Corruption Commissioner

Reeves also announced a block on any Covid-era PPE contract being abandoned or waived until it has been assessed by the new Covid Corruption Commissioner, whom will be appointed in October.

The decision will affect £647 million of Covid PPE contracts where contract recovery was previously earmarked to be waived.

It follows action already in motion to cut government waste and curb unnecessary spending. In her statement to Parliament in July, the Chancellor pledged to halve government consultancy spend from 2025-26, with savings targets of £550 million this financial year and a further £680 million in the next already announced.

Excessive use of ministerial travel by aeroplane and helicopter is also being cutdown, with a contract for a VIP helicopter previously cancelled.

Industrial Strategy

The Chancellor also today announced that the Industrial Strategy will be at the heart of the government’s mission to grow the economy, unlock investment and make every part of the country better off. It will focus on delivering long-term change to the economy by making Britain a clean energy superpower and accelerating to net zero, breaking down barriers to regional growth, and building a secure and resilient economy.

A green paper will be published around Budget in October outlining the long-term sectoral growth and priority industries of the government, ahead of the final strategy published in the spring of 2025 following a consultation with business.

HMRC package

Chancellor Reeves also outlined a package of reforms to improve the UK’s tax system to help fix the foundations of the UK economy.

As part of the package, HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and government departments.

The introduction of e-invoicing can significantly reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns - all helping to close the tax gap. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake.

The Chancellor also announced that Exchequer Secretary to the Treasury James Murray, the minister responsible for the UK’s tax system, has become the Chair of the HMRC Board. This is to help oversee the implementation of his three strategic priorities for HMRC; closing the tax gap, modernising and reforming, and improving customer service.

It was also announced that a new Digital Transformation Roadmap, aimed to be published in Spring 2025, will set out HMRC’s vision to be a digital first organisation underpinned by customer insight. The Roadmap will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally.

There was a further update that new staff are expected to join HMRC’s training programme in November as 200 additional offer letters have been issued as part of the 450 letters already sent. This is part of HMRC’s plans to recruit an additional 5,000 compliance staff to help close the tax gap.