Rachel Reeves has announced an extra £29bn per year for the NHS, along with funding boosts for defence and housing, as she set out her spending plans for the coming years.
Speaking in the House of Commons, the chancellor outlined how much each department would have for day-to-day spending between 2026-29 and investment projects up until 2030.
Departments that will see squeezes in their day-to-day spending include the Foreign Office and the environment department.
Reeves said her Spending 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 cumulation 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.
The NHS budget increased by 3% per year across three years for day-to-day running costs.
Many departments have lost out, including the Foreign Office which loses 6.9% a year, mainly in aid spending; Transport, which loses 5% a year over the next three years, and the Environment department which 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.
