Rachel Reeves is set to unveil billions of pounds in public funding in today’s eagerly-anticipated spending review.
The Chancellor will argue she is replacing economic “chaos” with “stability” in the announcement at lunchtime, which is expected to include big increases for the NHS, defence and schools.
But other Whitehall departments are likely to face real-terms funding cuts.
Among the main announcements is expected to be a £30 billion increase in NHS funding, a rise of around 2.8 per cent in real-terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5 per cent of GDP.
The Institute for Fiscal Studies has warned that any increase in NHS funding above 2.5 per cent is likely to mean real-terms cuts for other departments, or further tax rises to come in the Budget this autumn.
