Rachel Reeves LIVE: Chancellor to make massive £500 million announcement

Chancellor Rachel Reeves is launching a £500 million fund to help struggling families and children. The cash could be used to cut truancy, keep young people out of crime or help prepare them for work.

The Better Futures Fund aims to raise cash from local government, social investors, and philanthropists, on top of the government's funding.

But it comes at a difficult time for the Chancellor, after Transport Secretary Heidi Alexander dropped heavy hints on Sunday that she will be forced to impose tax rises on the wealthy after spending billions more than planned on benefits. The economy contracted by 0.1% in May and 0.3% in April.

Ms Reeves will tomorrow deliver a major speech setting out some of her plans, known as the Mansion House speech, and some details of this are likely to emerge today.

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