The Spending Review sets out the Government’s departmental spending plans over the next three years, and capital spending over the next four.
Today, the Chancellor of the Exchequer delivered her speech on the long-awaited Spending Review in the House of Commons following Prime Minister’s Questions (PMQs).
Here are some sector takeaways from her speech:
Healthcare
Healthcare was the big winner of the Spending Review, with the Department for Health and Social Care’s budget receiving a 3% annual increase, equating to a cash injection of £29 billion by 2028.
The Spending Review also announced a £2.3 billion increase in the Department of Health and Social Care’s annual capital budgets from 2023-24 to 2029-30 to invest in the NHS. This will include new technology, hospitals and primary care.
Transport
The Chancellor highlighted the £15.6 billion local transport package, which will be delivered to areas outside of London and the South East, through the new Transport for City Regions settlements.
The Government also committed £2.6 billion to decarbonise transport over the next three years, including £1.4 billion to support the uptake of EVs and £400 million to support the rollout of charging infrastructure.
Housing
In what is being called the biggest investment in a generation, £39 billion has been allocated for a new 10-year Affordable Homes Programme.
The Government announced a ‘housing bank’, with Homes England being provided £10 billion for financial investments and to deliver more homes.
Energy and Net Zero
Highlighting the importance of energy security, the Chancellor set out funding for numerous low-carbon projects, including new nuclear power plans.
This includes £14.2 billion for the new Sizewell C power plant in Suffolk, £2.5 billion for Europe’s first Small Modular Reactor Programmes and £8.3 billion in homegrown clean power through Great British Energy and Great British Energy-Nuclear.
Skills
Promising to support ‘over a million young people into training and apprenticeships’, the Chancellor announced £1.2 billion a year by 2028/29 for training and upskilling.
This funding forms part of the Government’s broader innovation and education package, which also allocates £2 billion for its AI action plan.
Defence and Security
Defence is another big winner of the Spending Review. With Defence spending rising to 2.6% GDP by April 2027, a £11billion uplift, partly funding by cutting the overseas aid budget.
The Chancellor also highlighted her Government’s ambitionfor the UK to become a ‘defence industrial superpower’, with £4.5 billion of investment in munition factories and £6 billion to upgrade nuclear submarine production.
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