Resolution Foundation says half of all public spending will be allocated to the NHS and social care by the end of the decade

Business live – latest updates

Britain is on track to become a “National Health State” where half of all public spending is allocated to the NHS and social care by the end of the decade, according to a leading thinktank.

Rachel Reeves used her spending review on Wednesday to prioritise billions of pounds for the NHS as she outlined Labour’s priorities up to the next general election, while squeezing funding for other areas.

As the chancellor came under pressure on Thursday to defend her plans, amid warnings that tax rises could be required, the Resolution Foundation said health spending was set to increasingly dominate public spending.