Rachel Reeves, the Chancellor of the Exchequer, has announced a significant increase in day-to-day health spending in the United Kingdom. The budget will see a rise of £22.6 billion in day-to-day health spending and an additional £3.1 billion in capital spending for the NHS this year and next year. This increase is a result of the difficult decisions taken on tax, welfare, and spending.
The investment in the NHS includes £1 billion for health capital investment to address repairs and upgrades, £1.5 billion for new beds in hospitals, and additional capacity for diagnostic tests and surgical hubs. The government plans to deliver seven hospitals affected by the Raac crisis and aims to reduce waiting lists to reach the target of waiting times no longer than 18 weeks.
In addition to health spending, Reeves also announced £6.7 billion for capital investment in schools, an increase of 19% in real terms, and £2.1 billion for school maintenance. Other investments include funding for green hydrogen projects, the warm homes plan, and transport infrastructure improvements.
The budget also includes changes to fiscal rules, with a move to target Public Sector Net Financial Liabilities (PSNFL). Four “guardrails” will ensure responsible borrowing, focusing on financial investments that earn a return, strengthening infrastructure delivery, setting capital budgets for five years, and ensuring transparency in reporting.
Overall, the budget aims to restore stability to public finances, protect working people, fix the NHS, and rebuild Britain. The government’s decisions have led to an increase in spending, tax, and borrowing, with a focus on responsible investment and long-term economic growth.
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