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 , 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.
