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Chancellor Rachel Reeves has unveiled the government’s Spending Review, detailing the day-to-day budgets for departments for the next three years. The NHS will see a 3% increase in funding each year, along with additional funding for defense and housing. However, other departments will face budget cuts, such as a 1.7% reduction at the Home Office, a 2.7% decrease at the Department for Environment, Food and Rural Affairs (Defra), and a 6.9% cut at the Foreign Office. BBC reporters analyze how key services have been affected and the potential implications for the public.
In the education sector, there is a significant boost in funding, particularly for England’s schools and training programs. The core schools budget is set to increase by £2bn in real terms by 2029, with a focus on addressing previous commitments like free school meals and free breakfast clubs. However, there are concerns about funding for special educational needs and disabilities (SEND) support, as well as the adequacy of funding for rebuilding leaky schools awaiting construction.
The 3% annual real-terms increase in NHS spending has been welcomed, covering day-to-day expenses such as staff pay and patient care. The Department of Health will also see a 2.8% annual increase, addressing areas like medicines regulation and pandemic preparedness. Despite the boost in day-to-day funding, questions remain about whether it will be sufficient to meet the growing demands of an aging population and rising healthcare costs.
Transport infrastructure upgrades are on the horizon, with a focus on long-term investments. Despite a 5% reduction in the Department for Transport’s annual day-to-day budget, capital expenditure for transport infrastructure is set to increase by 3.9%. Projects like a new rail line and investments in trams, trains, and buses outside of London are part of the government’s plans. However, critics question whether these ambitious projects will materialize in the near future.
The announcement of £39bn for social and affordable housing has been hailed as a “game changer” by housing associations. The funding aims to support the construction of 1.5 million homes over the parliament. While the investment has been praised, concerns remain about the need for a clear target for social rent homes and ending homelessness for good. Housing charity Shelter has emphasized the importance of setting clear goals to address the housing crisis and provide adequate housing for all
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