UK Chancellor Reeves Unveils Spending Review Doubling Affordable Housing Investment

UK Chancellor Rachel Reeves is set to unveil a significant spending review focusing on "Britain's renewal" and prioritizing the needs of working people, with major increases planned for the NHS, defence, schools, and affordable housing. The government will commit £39 billion over the next decade to fund affordable and social housing, aiming to nearly double annual investment by 2029-30 and to build 1.5 million homes before the next election. NHS funding is expected to rise by around £30 billion, a 2.8% real-terms increase, alongside an additional £4.5 billion for schools and an increase in defence spending to 2.5% of GDP. However, the Institute for Fiscal Studies warns that funding increases above 2.5% for the NHS could lead to real-terms cuts for other departments or require further tax rises, presenting a challenge for the Chancellor to balance fiscal rules with Labour’s spending commitments. The review also includes £16.7 billion for nuclear power projects, extension of the £3 bus fare cap until 2027, and plans to revise Treasury rules to encourage investment beyond London and the South East. Chancellor Reeves emphasizes choices for stability and investment over chaos and decline, highlighting this spending review as a key step toward national renewal.