GEORGE Osborne will today insist that Britain is moving from "rescue to recovery" as he outlines a plan to spend billions of pounds extra on infrastructure projects into the next parliament and beyond.
Having secured an extra £11.5 billion in departmental savings, the Chancellor in his spending review statement for 2015/16 will insist how he is shifting money away from day to day and into roads, energy and IT projects.
"Britain is moving from rescue to recovery. But while the British economy is leaving intensive care, now we need to secure that recovery," he is due to tell MPs.
"We're saving money on welfare and waste to invest in the roads and railways, schooling and science our economy needs to succeed in the future.
"I know that times are still not easy for families but we have a clear economic plan. We've stuck to it. It is working. And I'm determined to go on delivering it. Now, together, we're moving Britain from rescue to recovery, let's build an economy that works for everyone," he will add.
Mr Osborne yesterday confirmed he would offer "real protection" to spending on health and schools in England as well as overseas aid by ringfencing their budgets. Some departments, in contrast, will see an additional 10% cut in their spending.
The overall reduction is set to see the £30bn annual Scottish grant reduced by several hundreds of millions of pounds.
Labour said that today's statement would lay bare "three years of failure" since Mr Osborne's last spending review in 2010, which have seen the slowest UK economic recovery for more than 100 years with growth of just 1.1%, compared to the 6% predicted at the time.
Today, Mr Osborne is also expected to reveal how he intends to implement a proposed cap on previously uncontrolled parts of the public finances such as welfare, debt interest and payments to the EU.
The cap on so-called "annually managed expenditure" was floated in March, when Mr Osborne said he would impose a limit on a "significant proportion" of AME, which is made up of elements of public spending that can go up and down due to factors beyond the Government's control.
Labour derided the Government's "lamentable incompetence" on infrastrucutre.
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