Seven key points from Rachel Reeves Spending Review - where your money is going

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a day ago

Seven key points from Rachel Reeves Spending Review - where your money is going
There will be more money for police, schools and the NHS - and less spent on housing asylum seekers in hotels
Chancellor of the Exchequer Rachel Reeves delivers her Government's spending review to MPs in the House of Commons
Rachel Reeves said 'we are renewing Britain' as she set out how she plans to spend hundreds of billions of pounds of taxpayers' money. The Chancellor said total departmental budgets would grow by 2.3% a year in real terms and promised a 'record cash investment' in the NHS, amounting to an extra £29 billion a year.
Setting out the spending review in the House of Commons, Ms Reeves said the tax hikes and looser borrowing rules allowed her to spend £190 billion more on the day-to-day running of public services and £113 billion on investment.
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Ms Reeves promised funding of up to £280 million more per year by the end of the spending review period in 2028/29 for the new Border Security Command and committed to end spending on hotels for asylum seekers by the next election.
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The Chancellor said her 'driving purpose' was 'to make working people, in all parts of our country, better off' as she promised cash to rebuild schools and hospitals, confirmed funding for nuclear power schemes and major transport projects across the country. 'We are renewing Britain,' she said. 'But I know that too many people in too many parts of our country are yet to feel it.'
As well as changing Treasury rules to support investment in England's regions, Ms Reeves said the spending review period would provide £52 billion for Scotland, £20 billion for Northern Ireland and £23 billion for Wales.
Border Security and asylum seekers
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At least £280 million a year will be invested into border security by 2028-29, including into the Border Security Command, to tackle people-smuggling gangs running small boats. Funding of at least £400 million a year by 2028-29 will speed up the process of asylum processing, increase appeals capacity and continue asylum returns alongside ending the costly use of hotels for accommodation.
More money for the NHS
The Government is increasing real-terms day to day spending in the NHS by 3% per year for every year of the review period, Chancellor Rachel Reeves has announced, providing an extra '£29 billion per year' for the health service. Ms Reeves said the Government was spending £10 billion on digitising services as part of the Government's 10-year plan for the health service.
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She said: 'To support that plan, to back the doctors and nurses we rely on, and to make sure the NHS is there whenever we need it, I am proud to announce today that this Labour Government is making a record cash investment in our NHS, increasing real-terms, day-to-day spending by 3% per year for every year of this spending review.
'An extra £29 billion per year for the day-to-day running of the health service. That is what the British people voted for and that is what we will deliver. More appointments. More doctors. More scanners.
'The National Health Service, created by a Labour government, protected, by a Labour government, and renewed, by this Labour Government.'
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More money for police
Police spending power will see an average 2.3% real terms increase over the Spending Review period as the government puts police back on the beat in communities across England and Wales. The Government has promised an additional 13,000 police officers, PCSOs and special constables in neighbourhood roles.
Transport
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The Chancellor announced £15.6 billion funding in total by 2031-32 for local transport projects in England's city regions and £2.3 billion from 2026-27 to 2029-30 for local transport improvements outside of these nine regions. The Chancellor announced a further £2.5 billion to connect Oxford and Cambridge through the continued delivery of East-West Rail and confirmed she will set out plans to take forward work on Northern Powerhouse Rail in the coming weeks.
Funding announced today will deliver upgrades to Cardiff Central station, reduce journey times between Manchester and Leeds through continued investment in the TransPennine Route Upgrade, and progress the delivery of Midlands Rail Hub, enhancing connections from Birmingham across the West Midlands and to other regions.
Money for communities
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The Chancellor also confirmed additional funding for up to 350 communities, especially those in deprived areas, through Plans for Neighbourhoods – giving new long-term regeneration funding and supporting councils in their fightback against graffiti and fly-tipping across Britain.
The money could be used for more parks, community centres and libraries.
Devolved nations
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The Scottish Government will receive an average extra £2.9 billion across the duration of this Spending Review through the operation of the Barnett formula. In recognition of Scotland's unique needs, they will have 20% more to spend per individual than comparable UK Government spending for people in the rest of the UK.
The Welsh Government will benefit from an average extra £1.6 billion over the Spending Review period through the Barnett formula to deliver against the priorities of working people in Wales, and 20% more to spend per individual than comparable UK Government does for people in the rest of the UK.
The Northern Ireland Executive will receive an average extra £1.2 billion through the Barnett formula, 24% more to spend per person than the comparable UK Government spending in the rest of the UK, reflecting Northern Ireland's unique circumstances.
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More money for schools, school buildings and nurseries
Rachel Reeves has said £370 million will be spent on school-based nurseries, in addition to £555 million to 'break the dangerous cycle of late intervention and low-quality care'.
The Chancellor told the Commons: 'I can also announce £370 million for school-based nurseries, to put us firmly on track to meet our Plan for Change commitment – for a record number of children being school-ready.
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'And for children's social care, to break the dangerous cycle of late intervention and low-quality care, I am providing £555 million of transformation funding over the spending review period, so that children do not go needlessly into care when they could stay at home. And, for children where state intervention is necessary, better care and better outcomes.
'And last week, I was pleased to announce, with … the Culture Secretary (Lisa Nandy) that more than £130 million from the Dormant Assets scheme with the financial services sector will be allocated to fund facilities for our young people, to give every child the chance to take part in music, sport and drama, to fund libraries in schools, so that the confidence and opportunities that those resources open up, are no longer the preserve of a privileged few.'