UK Finance Minister Rachel Reeves unveiled a major spending review on Wednesday, focusing on health, defence, and infrastructure to drive economic growth and restore confidence in the Labour government’s vision.
In a key fiscal update, Finance Minister Rachel Reeves outlined the Labour government’s spending priorities through 2030, emphasising investments aimed at "working people" and long-term national prosperity. The review sets departmental budgets from 2026 to 2029 and includes significant funding boosts for housing, transport, and clean energy.
Reeves reaffirmed her October budget framework, which introduced the largest tax increases in a generation and loosened fiscal rules to allow more borrowing for investment. These measures, she argued, have created the economic stability necessary to expand public services funding by £190 billion over Conservative-era plans.
A central component of the announcement is a £39 billion, 10-year programme to build affordable housing, nearly doubling current annual spending. An additional £10 billion will go toward building new homes across England.
Despite these efforts, Reeves acknowledged limited room for day-to-day spending increases in other government areas due to prioritisation of defence and healthcare. Departmental budgets are projected to grow by 2.3% annually in real terms.
The spending review comes at a politically sensitive time. Labour's popularity has waned since its landslide victory last July, with criticism over cuts to winter fuel payments and disability benefits. Reeves’ tax policy—targeting employers while strengthening workers’ rights—has also drawn fire from Conservatives, who link it to the highest unemployment rate in nearly four years.
The government has since partially reversed the winter fuel cuts, but the right-wing Reform UK party, led by Nigel Farage, has gained ground, outperforming Labour in recent local elections.
"At the budget last October and again in the spring, I made the choices necessary to fix the foundations of our economy," she said. "We are starting to see the results."
Following the unveiling of the spending review, Chancellor Rachel Reeves assured the public that council tax rates will not rise as part of the government’s new fiscal plans.
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UN Secretary-General António Guterres has expressed deep sorrow over the tragic Air India plane crash in the Indian city of Ahmedabad, which claimed the lives of more than 200 people.
Italy’s Prime Minister Giorgia Meloni Meets NATO Secretary General Mark Rutte Ahead of Defense Spending Summit
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Start your day informed with AnewZ Morning Brief: here are the top news stories for June 8th, covering the latest developments you need to know.
Presidential candidate Miguel Uribe Turbay is in critical condition after being shot three times — including twice in the head — during a campaign event in Bogotá.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
Kazakhstan and the UK are strengthening defense ties with a new Military Cooperation Plan, focusing on peacekeeping and military education.
Mexican President Claudia Sheinbaum has condemned U.S. immigration raids and National Guard deployment in Los Angeles, calling for reforms instead of enforcement.
Belgian midfielder Kevin De Bruyne has left Manchester City after a successful ten-year career to join Italian club Napoli on a free transfer. During his time at City, De Bruyne played a key role in helping the team secure six Premier League titles and a Champions League victory.
Ukrainian President Volodymyr Zelensky warned Thursday at the Global Security Forum that no country can afford to fall behind in technological development when it comes to national security.
The US advises its citizens in the Middle East and North Africa to exercise "increased caution." The recommendation is due to rising regional tensions, the State Department said.
The UN Refugee Agency (UNHCR) has revealed that the number of people forcibly displaced by war, violence, and persecution has reached an unprecedented 122.1 million globally, describing the situation as “untenably high.”
UN Secretary-General António Guterres has expressed deep sorrow over the tragic Air India plane crash in the Indian city of Ahmedabad, which claimed the lives of more than 200 people.
UN Secretary-General António Guterres has expressed deep sorrow over the tragic Air India plane crash in the Indian city of Ahmedabad, which claimed the lives of more than 200 people.
Italy’s Prime Minister Giorgia Meloni Meets NATO Secretary General Mark Rutte Ahead of Defense Spending Summit
Only one survivor among 242 in Air India crash in Ahmedabad, police say
Statement of Levon Mnatsakanyan at Baku Military Court: Confirmation of Landmine Placement in Occupied Territories
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