Announcement to MPs expected later this afternoon

Chancellor Rachel Reeves will tell MPs that the state of the country鈥檚 finances are worse than expected, with newspapers reporting over the weekend that a 拢20bn gap has been identified.

In an effort to avoid tax rises, Reeves is planning to scrap a series of major infrastructure schemes, including the New Hospitals Programme, the Stonehenge tunnel and other roads schemes.

According to The Times, she is also looking to sell off empty public buildings and reduce government spending on consultants.

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Source: HM Treasury / Flickr

The chancellor is set to announce cuts to spending on infrastructure later today

Former Tory chancellor Jeremy Hunt has accused Reeves of being 鈥渂eyond disingenuous鈥� in claiming surprise at the state of the finances, pointing out that the Office for Budget Responsibility publishes its own assessment twice a year.

The Institute for Fiscal Studies also identified a similar sized gap after the budget in March.

Reeves鈥� announcement will come this afternoon and is also expected to outline plans for a new Office of Value for Money which is promising to put an end to wasteful spending in government, providing targeted scrutiny of public spending.

Meanwhile, housing secretary Angela Rayner said her 鈥渘umber one priority鈥� was investment in social and affordable housing to 鈥渆nsure everyone has a secure roof over their head鈥�.

A major planning announcement is expected this week and Rayner said: 鈥淲e will take action to inject confidence and certainty into the social housing system, so that councils and private providers can get back to building.鈥�

The Ministry for Housing, Communities and Local Government is preparing to publish its reformed National Planning Policy Framework (NPPF).

The most recent NPPF was published only last December by then-housing secretary Michael Gove but the new Labour government will introduce fresh reforms with the aim of 鈥渒ickstarting the sector out of this slump鈥�.

The new framework, expected to be announced to MPs tomorrow, will detail plans for the government鈥檚 鈥渟trategic approach鈥� to green belt development, which will prioritise so-called grey-belt land for building and introduce 鈥済olden rules鈥� for development.