Britain ‘becoming a national health state' under Reeves
Britain is becoming a 'national health state' under Rachel Reeves, with treatment poised to account for half of all public services spending by the end of the decade.
Analysis by the Resolution Foundation said the Chancellor was presiding over a 'major reshaping of the state' that will pave the way for more tax rises after she boosted NHS budgets in the spending review.
The Left-leaning think tank said the health service was on course to account for almost £1 in every £2 of all day-to-day Whitehall spending by the next election. This is up from a third in 2010 and a quarter in 1999.
Health accounts for 90pc of the extra public service spending over the next three years at the expense of other Whitehall departments, the Resolution Foundation said.
This includes defence, which saw a much smaller increase in its day-to-day spending budget, although investment spending for tanks, planes and military bases saw a much bigger increase.
The think tank warned that this trend had led to 'shrunken public services elsewhere'.
It noted that while real, per-person funding for health was set to increase by 36pc between 2009 and 2029, spending on prisons and the courts would fall by 16pc while housing and local government budgets were on course to fall by 50pc over the same period.
British families are already on the hook for the equivalent of £1,550 of tax rises after October's record £40bn raid by the Chancellor.
But Ruth Curtice, the chief executive of the Resolution Foundation, said people faced more pain in the coming months.
She said: 'The spending review was a huge deal as the Chancellor set out details of nearly £300bn of extra spending over the second half of the [current] parliament. But as the dust settles a few clear winners have emerged.
'The extra money in this spending review has already been accounted for in the last forecast. But a weaker economic outlook and the unfunded changes to winter fuel payments mean the Chancellor will likely need to look again at tax rises in the autumn.'
Ms Reeves has been accused of sacrificing police and defence spending in favour of a record NHS handout, with households now facing higher council tax bills to pay to keep their streets safe.
Treasury documents revealed that the Government was already forecasting a 5pc increase in council tax each year until 2028, meaning an extra £395 for the average B and D band properties.
Ms Reeves's plans also show that total non-defence investment will suffer cuts on average for the rest of this parliament.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Trump considers auto tariff hike to boost US production
US President Donald Trump announced on that he may soon raise auto tariffs, aiming to encourage automakers to accelerate their investments in the US, reported Reuters. This move comes amid ongoing discussions between automakers and the White House regarding the 25% tariffs previously imposed on autos by Trump. Trump said at a White House event: "I might go up with that tariff in the not too distant future. The higher you go, the more likely it is they build a plant here." The Detroit Three automakers have expressed concerns over a recent deal that reduces tariffs on British car imports while maintaining them for Canadian and Mexican production. Trump highlighted recent investment commitments, such as General Motors' plan to invest $4bn in three US plants and relocate some SUV production from Mexico. In March, Hyundai announced a $21bn investment, which includes a new US steel plant. Mexico stated last month that cars assembled in Mexico and exported to the US will face an average tariff of 15%, rather than 25%, due to reductions for the value of US content. Trump said: "They wouldn't have invested 10 cents if we didn't have tariffs, including for manufacturing American steel, which is doing great.' Automakers are grappling with rising cost pressures due to tariffs. Ford Motor and Subaru of America have recently increased prices on certain models to offset higher costs. In May, Ford projected that tariffs would impact its adjusted earnings by approximately $1.5bn. General Motors reported last month that its current tariff exposure ranges from $4bn to $5bn, including around $2bn on affordable vehicles imported from South Korea, where entry-level Chevrolet and Buick models are produced. "Trump considers auto tariff hike to boost US production – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Private school families lose legal challenge against Labour VAT raid
Private school families have lost their High Court challenge against the Government over its decision to apply VAT on fees. Three separate challenges were heard together in a judicial review between April 1 and 3, using more than a dozen families as case studies. In a single written judgement issued on Friday, the three judges presiding over the case said they 'dismiss the claims'. Dame Victoria Sharp, Lord Justice Newey and Mr Justice Chamberlain said the VAT policy was 'proportionate' in its aim to raise extra revenue for state schools. Private school families sued the Government over its decision to apply 20 per cent VAT to fees, which came into force in January. Parent groups were seeking a 'declaration of incompatibility' under human rights laws. Even if successful, this would not have overturned the VAT policy in itself, but could have forced the Government to take a second look at the tax raid or hand out exemptions. The Independent Schools Council (ISC), which represents more than 1,400 private schools, hired Lord Pannick KC, the leading human rights barrister, to spearhead its legal challenge. The case was wrapped together with two others, using children as case studies to highlight the alleged unfairness of the policy. They included children with special education needs (SEND) who are not eligible for tailored care plans, religious families with children at faith schools, and a girl at a single-sex school. Claimants argued that the VAT raid interferes with the fundamental right to education for some pupils, and disproportionately affects lower-income families. Julie Robinson, chief executive of the ISC, said: 'This is an unprecedented tax on education and it was right that its compatibility with human rights law was tested. 'We would like to thank the claimants who shared their stories on key issues: SEND, faith schools, bilingual provision and girls-only education. It showcased how vital independent schools are for many families and the broad, diverse community choosing what they feel is the right education for their child. 'The ISC is carefully considering the court's judgment and next steps. Our focus remains on supporting schools, families and children. We will continue to work to ensure the government is held to account over the negative impact this tax on education is having across independent and state schools.' More follows. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
an hour ago
- Yahoo
Labour threatens to ban Serco over blunders
Labour has threatened to ban Serco from any new Government contracts after its blunders led to criminals going untagged for months. Lord Timpson, the prisons minister, said the global contracting giant could be blocked from future public contracts if there was 'another episode of similar poor performance'. It follows an undercover investigation by Channel 4 Dispatches which found criminals, including a murderer, had gone untagged for months under the £51 million-a-year contract Serco had with the Ministry of Justice (MoJ). An undercover reporter hired to fit and monitor electronic ankle tags on newly released prisoners was repeatedly sent to the wrong addresses for criminals, including a murderer and paedophile. They also discovered a murderer had gone without a tag for at least two months after claiming his legs were too swollen for an ankle monitor. Another criminal was accused of taking off her tag to go on holiday and boasting about it to almost 200,000 TikTok followers. Another was overheard claiming that he had ripped his tag off and could do what he wanted. A total of 20,000 people are tagged at present and the technology – which allows a freed offender to be tracked via GPS – is central to the Government's plans to expand the use of community punishments as an alternative to jail. The plans could see the number of people tagged more than double as thousands more prisoners are released early from jail. Up to 40,000 criminals convicted of lower-level crimes could also be spared prison in favour of community orders. In a letter to the Commons justice committee, Lord Timpson said new legislation – which came into force in February – will enable ministers to bar companies from being awarded contracts or securing procurements for up to five years. It also enabled public authorities to exclude contractors from bidding for contracts if they were judged to be unreliable in delivering work or where public confidence could be undermined by the 'honesty, integrity and probity' of suppliers. Lord Timpson said: 'In the event of another episode of similar poor performance [as defined in the Act] by Serco after the Act came into force, or a new occurrence of poor performance by Serco after the Act came into force, then Serco could be excluded from bidding or being awarded a future public contract through either the debarment or exclusion regimes.' In a statement to Channel 4, Antony King, managing director of Citizen Services at Serco, said: 'We are proud of the challenging work our people do, working with multiple partners across the criminal justice system in delivering an essential and critical public safety service, often with complex and ever-increasing requirements. 'Our performance continues to improve, which the MoJ recognise, and we continue to monitor record numbers of people in the community supporting our colleagues in probation and the Home Office.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
