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8 Things We Learnt From Rachel Reeves' Spending Review As Labour Splashes The Cash

5 8
11.06.2025

Chancellor Rachel Reeves speaking to the Commons

Rachel Reeves has just unveiled the government’s spending plans for the next three years.

It’s the first time the UK has had a multi-year spending review – where the Treasury sets out the budgets of government departments – since 2021.

Making a statement in the House of Commons today, the chancellor also explained how much each department would have to invest in capital projects such as new buildings until 2030.

Reeves said: “We are renewing Britain – but I know that too many people in too many parts of our country are yet to feel it.”

As this was a spending review, not an annual Budget, Reeves did not reveal any tax changes or borrowing plans.

Instead, she pledged to reject austerity and announced total departmental spending will increase by 2.3% more than inflation per year.

So where is all that money going? Here’s what we know.

1. Major investment in the NHS

The government will be making a “record” cash investment in the NHS, increasing day-to-day spending by 3% annually for the next three years after inflation.

This works out to an extra £29bn per year for the day-to-day running of the health service.

Emphasising Labour’s support for the NHS, Reeves said she is also “increasing the NHS technology budget by almost 50%”.

The government will put £10bn of investment into the health service too, to “bring our analogue health system into the digital age, including through the NHS app”.

2. Labour to end use of asylum hotels by 2029

Reeves promised the government

© HuffPost