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Rachel Reeves outlines boosts for NHS and housing

1 month ago 1

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Spending Review: Where key money is being spent... in 99 seconds

Rachel Reeves has announced an extra £29bn per year for the NHS, along with funding boosts for defence and housing, as she set out the government's spending plans for the coming years.

The chancellor also promised more money for schools and transport projects, saying "renewing Britain" was at the heart of her plans.

But the Spending Review also saw some departments squeezed in day-to-day spending, including the Foreign Office and the environment department.

Reeves said the review would deliver security, economic growth and "an NHS fit for the future", but Conservative shadow chancellor Mel Stride said it was a "spend now, tax later review".

He predicted "a cruel summer of speculation" ahead of the autumn Budget, when he said the chancellor would announce tax rises.

The spending review was the culmination of weeks of discussions between Reeves and her cabinet colleagues.

Negotiations have been particularly drawn out with Housing Secretary Angela Rayner and Home Secretary Yvette Cooper, with agreements not being reached until Sunday and Monday respectively.

Rayner's department secured £39bn across 10 years for social housing in England.

Reeves said the "spending power" of police forces would rise by 2.3% by 2029 - which is likely to include money from council tax bills - and pledged to end the use of hotels to accommodate asylum seekers by the end of the Parliament, expected in 2029.

Health was the big winner in the review, with the NHS budget increased by 3% per year across three years for day-to-day running costs.

The chancellor is restricted in how much can she spend as a result of her two self-imposed rules – that day-to-day spending should not be funded through borrowing and that government debt as a share of national income should fall by 2029-30.

Her decision to increase spending on health, means other departments will see their budgets tighten.

The Foreign Office loses 6.9% a year, mainly in aid spending; Transport, loses 5% a year over the next three years, and the environment department loses 2.7%.

Other policies announced ahead of the spending review include £86bn for science and technology projects, £15bn for transport and an expansion of the number of children receiving free school meals at a cost of £1bn.

Despite the tightening of some budgets, Reeves was keen to insist she was not returning to the austerity policies of the coalition and Conservative governments of 2010 to 2016.

She said austerity had been a "destructive choice for the fabric of our society and a destructive choice for our economy" adding: "My choices are different."

The chancellor aimed political jibes not only at the Conservatives, but also Reform UK, who she said were "itching" to replicate the "disastrous" spending policies of Liz Truss.

Reform UK's deputy leader Richard Tice said "spending was out of control" and said the government could learn from his party's efforts to cut waste in local councils.

The SNP's Dave Doogan said the chancellor had mentioned Reform UK and its leader Nigel Farage more than Scotland.

Liberal Democrat Treasury Spokesperson Daisy Cooper called for more money for social care telling MPs: "Putting more money into the NHS without fixing social care is like pouring water into a leaky bucket."

She said the chancellor could boost growth by pursuing a closer trade deal with the EU.

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