Switch off the editor’s digest free of charge
Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
Hard -represented areas of the British state, including the councils and the police, will continue to press in the expenditure check, since the government prioritizes the NHS and the defense at the expense of other services.
Chancellor Rachel Reeves will present the government on Wednesday Expenditure plans Until the next parliamentary elections, it is crucial that improving the health service is of crucial importance for the re -election opportunities of workers.
The Chancellor will give the NHS an increase in annual daily health expenditure by 2.8 percent during April next year.
Although the increase is less than the long-term increase since the start of the service in 1948, the increase in cash conditions of 30 billion GBP per year until 2028-29 is significantly better than some fears.
Matthew Taylor, Managing Director of the NHS Confederation, which Health Managers represents, said that the leaders of the service realized that all public services were under enormous pressure.
“The government, which is committed to offering the NHS a larger proportion of funds, will be incredibly difficult for services such as living, education and well -being, especially since they can affect people’s health needs,” he added.
Defense is also expected to increase the above inflation, which is reflected in the changing priorities of Great Britain, since the US European countries spend more for their own military. The government has already sworn to increase defense spending by 2027 to 2.5 percent of GDP.
In the budget last year, Reeves determined the parameters for everyday everyday expenses, which between 2026 and 2028 and 2028-29 had a total growth of 1.2 percent per year in reality.
But Max Warner, an economist at the Institute for Financial Studies, said that the money reeves had devoted itself to the NHS and the defense would mean a squeeze for other parts of the state in the order of 0.3 percent for annual real payments of daily expenses.
“Health returns to its traditional place as the winner of the expenditure of spending,” said Warner. Nevertheless, the 2.8 percent settlement, which was first reported by the Times, was less than the historical long-term growth rate of 3.6 percent per year in real terms.
Areas with daily spending cuts within the framework of the crowds are those who have suffered Salami observers from the former conservative government, such as courts, councils and means of transport in the past ten years.
The officials of the Ministry of Finance confirmed that some departments will have real terras cuts in the three years. But one said: “Nobody can really think that every department should increase a realmaster.”
Security, health and business will be the three main topics in Reeves’ speech on Wednesday. It will also highlight 113 billion GBP of additional capital expenses that are financed by borrowing, which will be made possible by optimization to the government’s financial rules last autumn.
The Chancellor will say that new investments in the whole country will only be possible because of their “decisions”, a mixture of general fiscal discipline in daily expenses and a work plan for credit for investments. “This money is only available for its decisions,” said an adjutant.
Pensions Minister Torsten Bell said on Sunday on X: “I claimed that we will return austerity measures: There is a word for it – garbage.”
One of the options that Reeves reveals on Wednesday include an additional 4.5 billion GBP per year for the budget of the core schools, which covers the students between the ages of 5 and 16.
At an annual school budget of 64 billion GBP, which implies an increase of around 7 percent compared to three years. An educational expert said: “It is difficult to say what this means in practice until we get the complete details, but these numbers indicate that the schools will be relatively protected.”
Reeves is likely to represent allocations for some other departments than practice in the greater, even if the numbers only enter water with inflation.
The government announced on Sunday that the expenditure check would be assigned for research and development with 86 billion GBP over four years without providing details about its distribution. The number 2025-26 from 20.4 billion GBP would increase by 2029-30 to 22.5 billion GBP.
Although Minister call this “transformative”, the F&E expenditure will actually be expenses Stay wide flat Real in real terms, according to the campaign for science and engineering.
While most departments settled with the Ministry of Finance before Wednesday, the officials admitted that the negotiations did not simply sail. “It’s not a pain -free moment,” said one.
Interior Minister Yvette Cooper still has a more generous settlement for the police and argues that the service needs more cash to achieve ambitious goals.
The Home Office also fights to reduce the expenditure for foreign help for hotel bills for asylum seekers in Great Britain, with an estimate of almost 2.2 billion GBP for this financial year, near the previous year of 2.3 billion GBP.
Angela Rayner, deputy prime minister with responsibility for housing and local government, was locked up in Last-Minute negotiations on the good details of the financing of councils, although a ball park value was agreed.
Additional reporting by Laura Hughes and Clive Cookson
