Rachel Reeves admits some will lose out in spending review

Chancellor Rachel Reeves has said not every government department will “get everything they want” in the upcoming spending review, as she defended her economic decisions.

In a speech in Manchester, Reeves suggested she had turned down requests for funding from ministers and argued a squeeze on funding was a “product of economic reality”.

Reeves said her rules on borrowing to pay for public services were “non-negotiable” and insisted they were necessary because of “Conservative maltreatment” of the economy.

The chancellor also confirmed winter fuel payments will be restored to some pensioners this year, after the government U-turned on cuts to the allowance.

The government said the spending review, which will be announced on 11 June, would “scrutinise every single pound the government…