RACHEL Reeves has handed the armed forces a £3billion boost in the Labour Government’s first Budget.
The Chancellor announced an increase in the defence budget for next year in her fiscal statement in the Commons.
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Part of the extra cash will be used to give soldiers a pay rise of 6 per cent backdated to April, The Telegraph reported.
The funding will also be used to buy weapons with the aim of replenishing stockpiles depleted by donations to Ukraine.
A pathway to increasing defence spending to 2.5 per cent of national economic output demanded by the Tories was not be in the Budget.
It is understood the injection will be a one-off and won’t tackle all of the military’s funding challenges.
The Chancellor said: “As we approach Remembrance Sunday it is vital that we take time to remember those who have served our country so bravely.
“So I am today announcing funding to commemorate the 80th anniversary of VE and VJ day next year to honour those who served at home and abroad.
“We must also remember those who experienced the atrocities of the Nazi regime first hand. I would like to pay tribute to Lily Ebert, the Holocaust Survivor and educator who passed away aged 100 earlier this month.
“I am today committing a further £2million to holocaust education next year so that charities like the Holocaust Educational Trust can continue their work to ensure these vital testimonies are preserved.”
Ms Reeves made history as the UK’s first female Chancellor when she delivered Wednesday’s Budget.
In her speech she said the “prize on offer” is “immense”.
She laid out new funding to cut hospital waiting lists, pave the way for more affordable homes and rebuild crumbling schools.
Ms Reeves added: “More pounds in people’s pockets. An NHS that is there when you need it.
“An economy that is growing, creating wealth and opportunity for all.
“Because that is the only way to improve living standards.”
Harking back to the Labour governments of Attlee, Wilson and Blair, Ms Reeves said it is “not the first time that it has fallen to the Labour Party to rebuild Britain”.
The Chancellor warned that the tax hikes and borrowing increases she is considering may not be enough to undo “14 years of damage” to the NHS, despite plans to pump billions of pounds into the health service.
WATCH RACHEL REEVES ON NEVER MIND THE BALLOTS
Alongside its Budget analysis, fiscal watchdog the Office for Budget Responsibility (OBR) will publish a report on the Conservatives’ legacy in government.
It is expected to account for the so-called £22billion “black hole” in the public finances.
Shadow chancellor Jeremy Hunt is contesting the report, claiming in a letter to top civil servant Simon Case that the OBR risks “straying into political territory and failing to follow due process”.
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