UK Spending Review Prioritizes Health and Defence Amid Budget Constraints

NHS to receive 2.8% annual real-terms increase; other departments face tighter funding

Chancellor Rachel Reeves has unveiled a £100 billion spending review that allocates significant resources to the National Health Service and defence, while imposing tighter budgets on other departments.

The NHS is set to receive a 2.8% annual real-terms increase in day-to-day spending over the next three years, amounting to a £30 billion boost by 2028.

Defence spending will rise to 2.5% of GDP by 2027, with an eventual target of 3%.

However, departments such as the Home Office and Housing will face budget constraints, potentially impacting services like policing and social housing.