Reeves to champion £113bn of new capital investment in spending review

Rachel Reeves: ‘I do want to make sure that every penny of that money works for the British economy and creates jobs.’ Photograph: Hannah McKay/PA

Rachel Reeves will put £113bn of new capital investment at the forefront of the spending review and argue that the billions of investment in homes, transport and energy would only have happened under Labour.

The billions unlocked by the change to the fiscal rules, which will be spent over the next parliament, will be at the centre of the government’s narrative in a fortnight’s time in an acknowledgment that Labour MPs need a better economic story to address rising discontent among the public.