Spending review LIVE: Rachel Reeves to make huge announcement from 12.30pm

Shadow Business Secretary Andrew Griffith slammed "classic socialism" and accused Labour of attacking family businesses.

Rachel Reeves will unveil her spending review on Wednesday, arguing that her priorities are “the priorities of working people”.

The Chancellor is expected to focus on “Britain’s renewal” as she sets out her spending plans for the coming years, with big increases for the NHS, defence and schools.

Arguing that the Government is “renewing Britain”, she will acknowledge that “too many people in too many parts of the country are yet to feel it”.

She will say: “This Government’s task – my task – and the purpose of this spending review is to change that, to ensure that renewal is felt in people’s everyday lives, their jobs, their communities.”

Among the main announcements is expected to be a £30 billion increase in NHS funding, a rise of around 2.8% in real terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5% of GDP.

But Wednesday could present a tough prospect for other government as the Chancellor seeks to balance Labour’s commitments on spending with her fiscal rules.

The Institute for Fiscal Studies has already warned that any increase in NHS funding above 2.5% is likely to mean real-terms cuts for other departments, or further tax rises to come in the budget this autumn.

She will say on Wednesday: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.

“These are my choices. These are this Government’s choices. These are the British people’s choices.”

Former Reform UK chairman Zia Yusuf has warned a quarter of a million fewer people are working since Labour's disastrous budget last year.

A series of measures have already been announced amid concern in Whitehall over the impact of the Spending Review on departments like the Home Office and Ministry of Justice.

They include:

– £15.6 billion for public transport projects in England’s city regions;

– £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk;

– £39 billion over the next 10 years to build affordable and social housing;

– An extension of the £3 bus fare cap until March 2027;

– £445 million for upgrades to Welsh railways.

The Chancellor is also expected to announce changes to the Treasury’s “green book” rules that govern whether major projects are approved.

The Government hopes that changing the green book will make it easier to invest in areas outside London and the South East.

Daily Express Senior Political Correspondent Christian Calgie has written a handy preview:

The Chancellor has vowed that her announcements will “invest in Britain’s renewal”, with new cash to boost living standards and fund major projects up and down the country.

However, her failure to secure economic growth after a year in the job, and pledges not to raise income tax, national insurance or VAT, mean tough times lie ahead for a number of key departments.

House of Commons library analysis suggests that unprotected departments - those whose budgets aren’t ring fenced - could have their funding cut by nearly £5 billion in real-terms.

Last night a Treasury press release name checked transport, security and health as those areas set for funding wins today.

By contrast, spending on police, councils, housing, the environment and culture will all feel the pinch over the coming years.

The Chancellor is expected to focus on "national renewal" as she sets out spending plans for the coming years.

Rachel Reeves will argue her priorities are the "priorities of working people".

She will say the Government is "renewing Britain" but will admit "too many people in too many parts of the country" are yet to feel that.

Ms Reeves will say: “This Government’s task — my task — and the purpose of this spending review is to change that, to ensure that renewal is felt in people’s everyday lives, their jobs, their communities.”

She will also say this afternoon: "I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.

"These are my choices. These are this Government’s choices. These are the British people’s choices."

More cash for the NHS, defence and schools is expected in the spending review that will be unveiled by Chancellor Rachel Reeves later.

However, there are also likely to be squeezes for other departments.

The review will set out day-to-day spending plans for the next three years and capital spending plans for the next four.

Hello and welcome to our live blog on the spending review set to be unveiled by Chancellor Rachel Reeves this afternoon in the House of Commons.

Stay with us as we bring you the latest updates, analysis and more.