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Key points at a glance from the Spending Review | Key points at a glance from the Spending Review |
(32 minutes later) | |
Chancellor Rachel Reeves has unveiled the contents of the UK's first multi-year spending review since 2021. | Chancellor Rachel Reeves has unveiled the contents of the UK's first multi-year spending review since 2021. |
The review sets the day-to-day budgets of government departments over the next three years, used to pay staff and deliver public services. | The review sets the day-to-day budgets of government departments over the next three years, used to pay staff and deliver public services. |
It also sets their investment budgets until the end of the decade, to pay for new infrastructure such as hospitals, schools, and military kit. | It also sets their investment budgets until the end of the decade, to pay for new infrastructure such as hospitals, schools, and military kit. |
Here is a summary of the key points. | Here is a summary of the key points. |
Follow live: Rachel Reeves delivers spending review | Follow live: Rachel Reeves delivers spending review |
Health | Health |
Day-to-day budget for the NHS in England to go up by 3% on average over the next three years, accounting for inflation, reaching £226bn by 2029 | |
Investment budget to be held in real terms over next three years, following rises over the last two years | Investment budget to be held in real terms over next three years, following rises over the last two years |
Up to £10bn earmarked by 2029 for new technology, including improving the NHS App and delivering single patient records | Up to £10bn earmarked by 2029 for new technology, including improving the NHS App and delivering single patient records |
The health department will be asked to deliver around £9bn in "efficiency gains" by 2029, out of a government-wide target of £13.8bn | |
Education | Education |
Core schools budget in England to go up by 0.4% in real terms on average over the next three years, reaching £69.5bn by 2029 | Core schools budget in England to go up by 0.4% in real terms on average over the next three years, reaching £69.5bn by 2029 |
Free school meals to be extended to about 500,000 more children from September 2026, costing around £490m per year | Free school meals to be extended to about 500,000 more children from September 2026, costing around £490m per year |
Crime, justice and borders | Crime, justice and borders |
Home Office day-to-day budget to go down by 1.7% in real terms over the next three years | Home Office day-to-day budget to go down by 1.7% in real terms over the next three years |
Ministers say they hope to reduce the department's spending on hotels for asylum seekers, and end their use by the next election | Ministers say they hope to reduce the department's spending on hotels for asylum seekers, and end their use by the next election |
They insist police "spending power" will still go up by 1.7% in real terms, based on the assumption that it will be paid for, in part, by increases in council tax | They insist police "spending power" will still go up by 1.7% in real terms, based on the assumption that it will be paid for, in part, by increases in council tax |
The Ministry of Justice budget, which pays for prison and court costs, to see average real-terms rises in day-to-day spending of 1.8% a year, although its investment budget will go down by 2.1% in real terms | The Ministry of Justice budget, which pays for prison and court costs, to see average real-terms rises in day-to-day spending of 1.8% a year, although its investment budget will go down by 2.1% in real terms |
Defence | Defence |
Ministry of Defence day-to-day budget to go up 0.7% in real terms, with a big 7.3% average annual rise in investment spending | Ministry of Defence day-to-day budget to go up 0.7% in real terms, with a big 7.3% average annual rise in investment spending |
The government has pledged to increase defence spending from 2.3% to 2.5% of overall economic output by 2027 | The government has pledged to increase defence spending from 2.3% to 2.5% of overall economic output by 2027 |
It is facing pressure from allies to go further, ahead of a key Nato summit later this month | It is facing pressure from allies to go further, ahead of a key Nato summit later this month |
Housing and local government | Housing and local government |
Ministry of Housing, Communities and Local Government (MHCLG) to see 1.4% real-terms cut in day-to-day budget | Ministry of Housing, Communities and Local Government (MHCLG) to see 1.4% real-terms cut in day-to-day budget |
The government says councils' "core spending power" will still go up, if they increase council tax by the maximum amount | The government says councils' "core spending power" will still go up, if they increase council tax by the maximum amount |
£39bn allocated for social housing in England between 2026 and 2036, an average of £3.9bn a year over the period compared to £2.3bn currently | £39bn allocated for social housing in England between 2026 and 2036, an average of £3.9bn a year over the period compared to £2.3bn currently |
Transport and environment | Transport and environment |
Transport department day-to-day budget cut by 5% in real terms - with the government arguing savings will be made when private train companies are nationalised over the coming years | Transport department day-to-day budget cut by 5% in real terms - with the government arguing savings will be made when private train companies are nationalised over the coming years |
£15.6bn allocated between 2027 and 2031 for transport projects in English city regions outside London | £15.6bn allocated between 2027 and 2031 for transport projects in English city regions outside London |
£3 cap on single bus fares in England extended until March 2027 | £3 cap on single bus fares in England extended until March 2027 |
Environment department day-to-day budget to fall by 2.7% in real terms | Environment department day-to-day budget to fall by 2.7% in real terms |
Energy | Energy |
Energy security department budget to go up 0.5% in real terms for day-to-day spending, and 2.6% for investment | Energy security department budget to go up 0.5% in real terms for day-to-day spending, and 2.6% for investment |
Additional £11.5bn committed towards the cost of building the Sizewell C nuclear power plant in Suffolk, which will also require private investment | Additional £11.5bn committed towards the cost of building the Sizewell C nuclear power plant in Suffolk, which will also require private investment |
International affairs | International affairs |
Foreign Office day-to-day budget to go down by 6.8% in real terms over next three years, the biggest drop, largely due to reduced aid spending | Foreign Office day-to-day budget to go down by 6.8% in real terms over next three years, the biggest drop, largely due to reduced aid spending |
Overseas aid will make up spending 0.3% of national income by 2027, under previously-announced plans | Overseas aid will make up spending 0.3% of national income by 2027, under previously-announced plans |
Science and technology | Science and technology |
Department for Science, Innovation and Technology day-to-day budget to rise by average 7.4% in real terms | Department for Science, Innovation and Technology day-to-day budget to rise by average 7.4% in real terms |
£2bn allocated over next three years to deliver the government's "opportunities action plan" for artificial intelligence | £2bn allocated over next three years to deliver the government's "opportunities action plan" for artificial intelligence |
£750m set aside to fund a new supercomputer at Edinburgh University, reversing a controversial cut in the early weeks of the Labour government | £750m set aside to fund a new supercomputer at Edinburgh University, reversing a controversial cut in the early weeks of the Labour government |
Scotland, Wales and Northern Ireland | Scotland, Wales and Northern Ireland |
Additional spending in England will be be matched by an extra £5.7bn per year on average for Scotland, Wales and Northern Ireland | Additional spending in England will be be matched by an extra £5.7bn per year on average for Scotland, Wales and Northern Ireland |