BRAZIL: Finance Ministry Raises 2025 GDP Estimate, Trims 2026 Forecast

• GBP1.0625bln have been on offer.
• This leaves GBP30.365bln of the gilt in issue.

Chancellor of the Exchequer Rachel Reeves delivering Spending Review. 

On energy/power: 

• "this government is investing in the biggest rollout of nuclear power for half a century: –A £30bn commitment to our nuclear-powered future. Yesterday ... announced £14bn for Sizewell C...We are investing over £2.5bn in a new Small Modular Reactor programme."
• "to support pioneering work taking place in West Burton in Nottinghamshire... ... we are investing over £2.5bn in nuclear fusion."

On housing: 

• "am proud to announce the biggest cash injection into social and affordable housing in 50 years. A new Affordable Homes Programme – in which I am investing £39bn over the next decade. Direct government funding that will support housebuilding… …especially for social rent…"
• "last autumn I enabled greater use of financial transactions to support investment in our infrastructure… …alongside strict guardrails that ensure that money is spent wisely through our public financial institutions. And so, in line with that commitment… …I am providing an additional £10bn for financial investments including to be delivered through Homes England…"

On transport:

• "last week,  ….I announced £15bn of investment in to connect our cities and towns...
• "To connect Oxford and Cambridge... I am providing a further £2.5bn for the continued delivery of East-West rail."
• "I can announce today that I am providing funding for the Midlands Rail Hub… …the region’s biggest and most ambitious rail improvement scheme for generations.."
• "I am pleased to announce £445m for railways in Wales over ten years"

Chancellor of the Exchequer Rachel Reeves delivering the Spending Review. On Defence spending: "...defence spending will now rise to 2.6% of GDP by April 2027…including the contribution of our intelligence agencies...With a £11bn increase in defence spending…and a £600m uplift for our security and intelligence agencies."

• On border control spending: "I can announce that funding of up to £280m more per year by the end of the spending review for our new Border Security Command."
• On asylum spending: "…we will be ending the costly use of hotels to house asylum seekers, in this Parliament. Funding that I have provided today…including from the Transformation Fund…[will save] the taxpayer £1bn per year."
• It remains to be seen whether the commitments on defence spending prove sufficient to avoid blowback from NATO and in particular, the US, which is demanding 5% of GDP being spent on defence or defence-related areas (albeit without a set target date).
• Politically, the commitments on border security and asylum are potentially notable. Immigration is, according to opinion polling, is the biggest single issue for voters and has been a key driver of support for right-wing Reform UK. Initial reports around Spending Review have seen Home Office (in control of border sec. and immigration) as facing a 'suboptimal' settlement.