Rachel Reeves unveils 3% NHS spending boost but cuts other budgets

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The UK Chancellor Rachel Reeves delivered a review of the spending she said that it would place Britain on a road to “national renewal”, where NHS obtained an annual batch of 29 billion pounds, while other areas faced daily spending.

Reeves revealed what she said was “work choices” for public spending over the next three or four years, with a focus on NHS, schools and a fatal boom for 113 billion pounds on capital projects.

However, departments facing real discounts in their daily budgets include the Ministry of Interior, the Ministry of Foreign Affairs and the Ministry of Culture, Information and Sports.

Reeves statement to the House of Commons included a long list of investments in northern railway projects and nuclear power plants to housing and prisons.

The counselor, who chased by the representatives of the Labor Party, said that the permit was disturbing the conservative “austerity”. “Instead of declining, I chose investment. Instead of retreat, I chose the national renewal,” she said.

For opposition governors, Sir Mail Sterid said that Reeves “lost control” on public financial resources and that it would have to return with more tax increase in the autumn budget.

Small printing in reviewing spending on Reeves 2025 revealed some winners and losers, after it was a fierce compromise on the money between the treasury and the individual ministers of the Council of Ministers.

Daily spending will be increased by Whitehal departments by 1.2 percent on average by real value over the next three years, but the NHS England budget will increase by 3 percent annually-an increase of 29 billion pounds annually by the end of parliament.

Reeves also increased the school budget by 2 billion pounds in real terms by the end of Parliament, or 1.1 percent a year to grow for each student.

The defense, which witnessed its budget that was issued through the discounts in foreign aid, was another great winner, while the local councils, some of which face bankruptcy, would get 3.4 billion pounds of grant financing by 2028/9.

After the bitter negotiations between Reeves and the Minister of Interior, Vette Cooper, the “Police spending force” will increase by 2.3 percent annually over the next three years. The Ministry of Interior’s budget will be pressed by 1.7 percent in real terms.

The spending review on Reeves is placed the political ground for the rest of Parliament, with the aim of increasing the support of employment in parts of the north and Midlands, where Nigel Faraj advances in the United Kingdom.

The “Green Book” treasury, which evaluates the value for money for public plans, was rewrotic, to put more weight on projects in less productive areas in the country.

She said that the revised rules mean that “any region has treasury directions practiced against them” and will allow more investment in the poorest parts in the country.

In its statement on “Good News”, Reeves strongly focused on allocating 113 billion pounds of spending on the additional infrastructure on the rest of Parliament, and many of them outside London and southeast.

She promised to give more details about the Labor Party plan soon to build faster railway communications linking the main cities in the north, with 39 billion pounds of housing and social affirmative at reasonable prices.

Reeves pledged that investments in nuclear energy, artificial intelligence, skills and the development of the so-called Oxford-Kambridge Arch are all part of the “Foundation Reform” plan in Britain.

The spending review is a great moment in Reeves Adviser. The polls of their survey have been covered since last July elections to the levels that were last seen in a short time in the Treasury Department in Koasi Quarting, who threw the budget of the Conservative Party 2022 “mini”.

Reeves argued that she was able to dispense with 113 billion pounds in spending on additional infrastructure due to the “options” that she had taken to reduce its financial rules for capital expenses while maintaining a narrow grip on daily spending.

“The chancellor is now clogging about her gifts, but we all know what will happen in the fall. She is constantly swinging on the edge of breaking her financial rule.”