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Manchester Evening News

Five key things Rachel Reeves announced in the Spending Review

The NHS, housing and defence were the big winners

Chancellor of the Exchequer Rachel Reeves delivers her Government's spending review
(Image: House of Commons/UK Parliament/PA Wire)

Rachel Reeves has unveiled how the government will spend taxpayers' money between now and the next general election.

The Chancellor has revealed her Spending Review which sets out how much money each government department will get over a three-year period. Ms Reeves also gave some details of how an extra £113bn of funding will be spent on big infrastructure projects.


The NHS, housing and defence were the big winners with huge funding hikes for each, while transport budgets will also get a boost.


Police forces will also get more 'spending power', the Chancellor confirmed after fears budget cuts could mean fewer officers.

Ms Reeves also committed to closing hotels that are currently housing asylum seekers by the end of the Parliament.

Here are the key things the Chancellor has announced in the Spending Review.

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Transport

Ms Reeves had already announced more than £15bn for local transport projects - including £2.5bn for Greater Manchester - last week.

The money which will go towards Greater Manchester mayor Andy Burnham's Bee Network will pay for 1,000 electric buses, new tram stops in north Manchester, Bury and Oldham, new tram-trains in Rochdale and the long-awaited Metrolink extension to Stockport.

Unveiling the rest of her Spending Review today (June 11), Ms Reeves also revealed funding for two major rail projects in the North.


The Chancellor announced £3.5bn for the Transpennine Route Upgrade which is already electrifying existing rail lines between York, Leeds and Manchester.

Ms Reeves also gave a nod to the Manchester-Liverpool railway line following reports that money has been set aside for the scheme.

But rather than referring to it directly, she promised to set out plans to 'take forward' Northern Powerhouse Rail - a new high-speed line across the North first announced more than a decade ago by the then-Tory Chancellor George Osborne - in the coming weeks.


NHS

The NHS will get a 'record' cash investment with a 3 per cent increase every year, amounting to an extra £29bn per year in total.

Ms Reeves said the government was spending £10bn digitising services as part of the government’s 10-year plan for the health service.

She said: "To support that plan, to back the doctors and nurses we rely on, and to make sure the NHS is there whenever we need it, I am proud to announce today that this Labour Government is making a record cash investment in our NHS, increasing real-terms, day-to-day spending by 3% per year for every year of this spending review.


"An extra £29 billion per year for the day-to-day running of the health service.

"That is what the British people voted for and that is what we will deliver. More appointments. More doctors. More scanners.


"The National Health Service, created by a Labour government, protected, by a Labour government, and renewed, by this Labour Government."

Police and prisons

Police 'spending power' is set to rise by an average of 2.3 per cent per year in real-terms. It follows fraught negotiations over funding.

Greater Manchester Police's chief constable Stephen Watson was among those who called for a boost to police budgets nationally.


Ms Reeves said the extra cash for police forces will allow Labour to fulfil its manifesto pledge of introducing 13,000 extra officers.

The Chancellor also announced £7bn to fund 14,000 new prison places and up to £700m per year into reform of the Probation system.

Housing

In her speech, Ms Reeves confirmed £39bn of funding for affordable and social homes which the Treasury first announced last night.


The Chancellor told MPs this funding increase represents the 'biggest cash injection into social and affordable housing in 50 years'.

She said that this funding would directly support housebuilding - made easier by recent planning reforms - especially for social rent.

Defence

Ms Reeves confirmed that defence spending would rise to 2.6 per cent of GDP by April 2027 which will amount to an £11bn uplift.

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There will also be a £600m increase for security and intelligence agencies which is accounted for in the defence spending boost.

The Chancellor said there would also be up to £280m more per year by end of spending review for a new border security command.

Alongside this, she promised that the government would tackle the asylum backlog and vowed to end the use of hotels to house asylum seekers by the end of this Parliament, saying that the move would save £1bn a year.

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