The Chancellor has today outlined a series of initiatives aimed at advancing the new government’s agenda, including a breakfast club pilot for primary schools, a reversal on written-off Covid PPE contracts, and reforms to modernise HMRC.
Support for Schools
As part of the package, the Chancellor announced a £7 million pilot programme to fund breakfast clubs in 750 schools for primary-aged pupils. Beginning in April 2025, the initiative aims to reduce the number of children starting the school day hungry, ensuring they are better prepared for learning.
The Department for Education will work closely with schools involved in the pilot to assess how best to deliver these clubs to meet the needs of both pupils and parents. The scheme is part of the government’s wider effort to tackle child poverty by addressing food insecurity among young people.
Covid Contracts Scrutiny
In a significant reversal, the Chancellor confirmed that the decision to write off £647 million in Covid-era PPE contracts has been overturned. These contracts, previously earmarked for abandonment, will now be reviewed by the newly appointed Covid Corruption Commissioner, set to take up the post in October.
The move forms part of the government’s broader strategy to cut down on wasteful spending and improve accountability. This follows an earlier pledge to halve government consultancy costs by 2026, with this year’s savings target set at £550 million and a further £680 million targeted for next year.
The Chancellor also highlighted ongoing efforts to reduce ministerial travel by helicopter, with a VIP helicopter contract having already been scrapped.
Industrial Strategy
The Chancellor also revealed that the government’s new Industrial Strategy will play a central role in driving economic growth, investment, and regional development. The strategy will focus on establishing the UK as a clean energy leader, accelerating progress towards net zero, and building a secure, resilient economy.
A green paper outlining the government’s plans for sectoral growth and priority industries will be published ahead of the Budget in October, with the final strategy set to follow in Spring 2025 after consultations with business leaders.
HMRC Reforms
In a bid to modernise the UK tax system, HMRC will soon launch a consultation on e-invoicing, which aims to promote the use of electronic invoicing across businesses and government departments. The introduction of e-invoicing is expected to improve cash flow, reduce administrative burdens, and close the tax gap by reducing errors in tax returns.
The Chancellor also confirmed that James Murray, Exchequer Secretary to the Treasury, will now chair the HMRC Board, overseeing key priorities such as closing the tax gap, modernising services, and improving customer support.
In addition, a new Digital Transformation Roadmap will be published in Spring 2025, outlining HMRC’s plans to become a digital-first organisation. The roadmap will also detail how the department will ensure support for those unable to engage digitally.
HMRC is also expanding its workforce, with 200 additional offer letters issued as part of a wider recruitment drive to bring in 5,000 compliance staff to help address the tax gap.
This series of measures underscores the government’s commitment to boosting public services, promoting transparency, and driving forward economic growth.
