Overview
- The review allocates £113 billion to capital projects and raises day-to-day NHS funding by 3% annually, adding £29 billion a year to frontline services.
- Defence spending will reach 2.6% of GDP by April 2027, delivering an extra £11 billion for the armed forces and a £600 million uplift for security agencies.
- A £39 billion social and affordable housing fund over ten years marks the largest boost in five decades and accompanies plans to end hotel use for asylum seekers, saving £1 billion annually.
- Overall departmental budgets will grow by 2.3% per year in real terms, although departments such as the Home Office, Defra and MHCLG face real-terms cuts as efficiency targets tighten.
- Analysts warn that sustaining these commitments against the chancellor’s fiscal rules will probably necessitate tax rises in the autumn budget.