Chancellor Rachel Reeves Unveils UK Spending Review with NHS, Defence, Infrastructure Boosts

Chancellor Rachel Reeves is set to unveil a comprehensive UK government spending review outlining budgets for government departments over the next several years, extending up to the likely 2029 general election. The review will emphasize significant investment in the NHS, defence, schools, and infrastructure, including £39 billion over ten years for affordable and social housing and £11.5 billion for the Sizewell C nuclear project. Public transport will also see increased funding, with £15.6 billion allocated for projects in English city regions and £445 million for Welsh rail upgrades. However, despite these boosts, several departments are expected to face real-terms budget cuts as the government prioritizes health and defence spending amid economic challenges like sluggish growth and higher borrowing costs. The Chancellor has also committed to extending the £3 bus fare cap in England until March 2027 and reinstating winter fuel payments for pensioners, marking a significant policy reversal. There is concern that London may miss out on funding, reflecting a strategic focus on regional investment to address political challenges and economic disparities.