Daily news highlights are now focusing on a major update from the United Kingdom. On Wednesday, UK Chancellor Rachel Reeves shared the government’s Spending Review. This is a very important moment because it shows how the UK government plans to spend billions of pounds of public money over the next few years.
The Spending Review covers money for hospitals, schools, defense, transport, housing, and more. Reeves says the goal is to “renew Britain” and improve public services for everyone. But not all departments will receive the same amount of money. Some will get more, while others might get less.
What Is the UK Spending Review?
The UK Spending Review is when the government decides how much money to give each department. This includes:
- Resource spending: day-to-day running costs for services like the NHS and police.
- Capital spending: money for building things like roads, hospitals, and schools.
The government said day-to-day spending will go up by 1.2% each year for three years. Capital spending will increase by 1.3% each year for four years.
However, experts like the Institute for Fiscal Studies (IFS) say this small rise means some tough choices must be made.
Key Announcements from the Spending Review
Here are the most important things Rachel Reeves announced in her speech:
1. Defense Spending
- The government will increase defense spending to 2.6% of the UK’s total economy (GDP) by April 2027.
- This includes:
- Building 12 new nuclear submarines
- Making more drones and missiles
- Improving cyber warfare tools
- The increase will partly come from cutting the overseas aid budget.
2. Health and the NHS
- Reeves called this a “record investment” in the NHS.
- She promised an extra £29 billion per year.
- That’s a 3% rise in real spending each year to support doctors, nurses, and hospitals.
3. Science and Technology
- The government will spend £86 billion over four years on science and technology.
- This money will go toward:
- New drug research
- Better battery technology
- Developments in artificial intelligence (AI)
4. Affordable Housing
- A £39 billion boost will be given to build social and affordable housing.
- This will help people who cannot afford high rent prices.
Other Big Areas Getting More Money
5. Education
- Free school meals will now go to over 500,000 more children whose families are on Universal Credit.
- This will make sure more children get at least one good meal during the day.
6. Justice and Police
- A total of £7 billion will be spent to create 14,000 new prison places.
- An extra £700 million per year will be used to improve the probation system.
- Over the next few years, police will receive more than £2 billion.
- The government also plans to hire 13,000 new officers and support staff in England and Wales.
7. Transport
- £15.6 billion will be invested in transport networks in the North and Midlands of England.
- London will get a four-year funding plan to support its Transport for London (TfL) network.
- Local transport funding will be four times bigger by the year 2029.
8. Nuclear Energy
- £14 billion will be used to build the Sizewell C nuclear plant.
- £2.5 billion will go to small nuclear reactors.
- These projects will create 10,000 jobs and help cut energy bills.
No Tax or Borrowing Changes—Yet
This Spending Review is not about taxes or borrowing. Reeves did not make any announcements about new taxes. However, she still wants to follow fiscal rules—which means:
- Only using taxes (not borrowing) for daily government spending
- Making sure national debt falls by 2029/30
Economists believe new tax increases might come in the Autumn Budget to help pay for all the extra spending.
Political Reactions
The Conservative Party, which is in opposition, strongly criticized the plan. Their finance spokesperson, Mel Stride, said the review is like “spend now, tax later.” He warned that more taxes will come soon.
Daily news highlights will continue to follow this story as more updates come. Stay tuned for more Breaking News and trusted government policy updates.
