Chancellor to splash cash on hospitals, schools and defence in £113bn spending spree – but Home Secretary Yvette Cooper LOSES bitter Treasury battle as cops miss out
Rachel Reeves will today unveil a massive £113 billion spending bonanza with the NHS set to receive a staggering £30 billion boost – while police forces face devastating cuts that could see officer numbers slashed.
The Chancellor’s Spending Review will see hospitals, schools and defence emerge as the big winners, with nuclear power plants and transport infrastructure also in line for billions in funding over the coming years.
But in a crushing blow for law and order, Home Secretary Yvette Cooper has LOST her bitter battle with the Treasury – with insiders revealing a police funding settlement was “imposed” on her department after weeks of heated negotiations went down to the wire.
The dramatic standoff has sparked warnings that Britain’s police forces face a “real crisis” with fears the Government will be unable to deliver on its flagship promise to recruit 13,000 new officers.
THE BIG WINNERS
NHS: £30 BILLION WINDFALL The health service emerges as the biggest winner, with reports suggesting a massive £30 billion boost over three years to tackle waiting lists and move care into communities. Health Secretary Wes Streeting has secured the lion’s share of available funding as Labour prioritizes its NHS rescue mission.
SCHOOLS: £4.5 BILLION BOOST Day-to-day funding for education will increase by £4.5 billion by 2028-9, with free school meals set to be expanded to 500,000 children whose parents receive Universal Credit, regardless of income.
DEFENCE: 2.5% OF GDP BY 2027 Military spending will rise from 2.3% to 2.5% of GDP by 2027 – an extra £5 billion a year – funded partly by cuts to overseas aid. Ministers have signalled a longer-term goal of 3% by 2034 as Britain faces growing threats from Russia.
NUCLEAR POWER: £16.7 BILLION A massive £14.2 billion will go to the new Sizewell C power plant in Suffolk, with £16.7 billion total for nuclear projects as Britain seeks energy security.
HOUSING: £39 BILLION OVER 10 YEARS Deputy PM Angela Rayner has secured a huge victory with £39 billion for affordable homes after a series of “bust-ups” with Treasury ministers and No 10.
TRANSPORT: £15.6 BILLION The biggest-ever local transport infrastructure investment in England’s city regions will fund upgrades to trams, buses and trains outside London.
SCIENCE & TECH: £86 BILLION A massive package for research and development targeting breakthroughs in medical treatments and energy storage.
THE BIG LOSERS
POLICE: FACING ‘REAL CRISIS’ Despite warnings from senior officers, Yvette Cooper has been forced to accept a squeezed settlement that could mean:
- Unable to fund promised 13,000 new officers
- Fears of falling police numbers
- Settlement “imposed” by Treasury after bitter standoff
- Cuts to other Home Office budgets to fund any police increases
Police chiefs have warned the service is “in crisis” with young officers not paid enough to live on and experienced colleagues leaving due to burnout.
We are facing a real crisis!” Surrey’s Police and Crime Commissioner warned, while the Police Federation said officers are at “breaking point.
LOCAL GOVERNMENT Councils face continued squeeze despite providing vital services including adult and children’s social care, housing and waste collection.
OVERSEAS AID Development budget slashed to help fund defence increases.
ENVIRONMENT £600 million shortfall for flood defences and farming schemes, with cuts hitting farms from 2026.
PRISONS Despite overcrowding crisis, limited new funding with just three new prisons planned.
COOPER’S HUMILIATION
The Home Secretary’s defeat represents a stunning blow for one of Labour’s most senior figures, with sources revealing:
- Cooper was the LAST Cabinet minister to agree a deal
- Settlement was “imposed” by Treasury on Monday after weeks of deadlock
- Downing Street forced to deny she’s on “resignation watch”
- Fears she cannot deliver Starmer’s flagship crime-cutting pledges
Shadow Home Secretary Chris Philp warned: “I’m very concerned that police numbers may fall. We are seeing police numbers falling already.
REEVES’ TIGHT SQUEEZE
The Chancellor faces an impossible balancing act with just £9.9 billion in fiscal headroom – further constrained by the Government’s £1.25 billion U-turn on winter fuel payments.
With day-to-day spending rising just 1.2% annually, it means real-terms CUTS of 1.3% on average for unprotected departments after accounting for NHS, defence and schools.
The Institute for Government warns this implies £5 billion of cuts by 2028-29 for departments not ring-fenced from reductions.
LABOUR’S CHOICES
Reeves will declare in the Commons: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.”
But Shadow Chancellor Mel Stride slammed it as the “spend today, tax tomorrow” spending review, warning: “Rachel Reeves talks about ‘hard choices’ – but her real choice has been to take the easy road. Spend more, borrow more, and cross her fingers.”
APPROVAL RATING DISASTER
The spending review comes as a devastating YouGov poll reveals just 12% of people think Reeves is doing a good job – with 53% saying she’s doing badly, giving her a net approval rating of MINUS 41.
As the Chancellor prepares to unveil her plans at 12:30pm, the stark reality is clear: while hospitals, schools and the military celebrate their windfalls, Britain’s police forces face a funding crisis that could leave communities less safe and Labour’s law and order promises in tatters.
The spending review will set budgets for day-to-day spending until 2028-29 and capital investment until 2029-30 – defining the financial landscape for the rest of this Parliament and revealing the true cost of Labour’s priorities.
Image credit: The Prime Minister and the Chancellor visit Jaguar Land Rover (54436865153) by UK Government, OGL 3, via Wikimedia Commons
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