Rachel Reeves will announce the results of a spending review today, outlining government department budgets for the decade. This is the first such review by a Labour government since 2007, and Reeves must balance election promises with fiscal rules. Some departments will face cuts, others increases.
the October Budget (spending to 2026) and departmental plans for efficiency. Wednesday's announcement covers day-to-day spending for three years and investment for four. Reeves ruled out borrowing for daily expenses and further tax hikes, raising questions about funding.
Announcements include infrastructure investment, a reversal on winter fuel payments, and increased defense spending. Significant funds are also allocated to science, the NHS, and schools.
Further tax increases are unlikely, suggesting cuts to unprotected departments. Defense, health, and education are likely protected. The Institute for Fiscal Studies warns of difficult trade-offs.
Increased defense spending and NHS investment will likely strain other departments. Cuts could impact Labour's other promises. Police chiefs have expressed concerns about potential cuts to frontline services.
Cabinet members delayed agreeing to spending settlements. Cuts are seen as necessary due to economic forecasts. Concerns exist about the impact on border control, policing, and social care.
The government highlights recent economic growth, but experts warn of changing conditions.
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